FAQ Content

What is securities lending? Securities lending is one of the myriad investment techniques used by funds to improve the return on their portfolios for the benefit of their shareholders. The term refers to the lending of a security by one party (sometimes called the beneficial owner) to...

Frequently Asked Questions About Shareholder Response to Market Volatility How do mutual fund shareholders respond to stock market volatility? Historically, mutual fund investors have reacted calmly and without panic in response to stock market volatility. The Investment Company...

Frequently Asked Questions About Municipal Bonds What are municipal bonds? Municipal bonds (“muni bonds”) are debt securities issued by state and local governments, or their authorized agencies, to borrow or raise money for public purposes such as building schools, highways, or...

Frequently Asked Questions About U.S. Takeover of Fannie Mae and Freddie Mac How will the government’s takeover of Fannie Mae and Freddie Mac affect mutual fund shareholders? Shareholders in money market funds and bond funds may benefit, because the Treasury Department’s action will...

Frequently Asked Questions About Service Provider Disclosure The Employee Retirement Income Security Act of 1974 (ERISA) requires plan fiduciaries to prudently select and monitor service providers and to act solely in the interest of the plan’s participants. Additionally, ERISA...

Target date funds, which are also called lifecycle funds, are designed to offer a convenient way to invest for a person expecting to retire around a particular date. A target date fund pursues a long-term investment strategy, using a mix of asset classes (or asset allocation) that the...

Frequently Asked Questions About Taxation for Mutual Fund Investors Taxes are a key consideration for all investors, including mutual fund shareholders. This page answers a few basic questions about how mutual fund investors are taxed. These FAQs are not intended to provide tax advice...

Frequently Asked Questions on Financial Transaction Taxes General Questions on Financial Transaction Taxes 1. What is a financial transaction tax (FTT)? 2. What is ICI’s position on FTTs? 3. What benefits do proponents of an FTT expect? 4. How would the proponents of an FTT expect...

Frequently Asked Questions About “Best Execution” What is “best execution”? While there is no specific definition of “best execution” under the securities laws, a broker-dealer has a duty to ensure that customers receive best execution on their orders by taking into account all the...

Frequently Asked Questions on Securities Lending by Regulated Funds What is securities lending? Securities lending is one of the myriad investment techniques used by funds to improve the return on their portfolios for the benefit of their shareholders. The term refers to the lending...