Derivatives—broadly defined as financial instruments whose value is derived from a separate asset or metric—have become an integral tool in modern financial management. Many fund advisers integrate derivatives into their funds’ portfolios.
Fund boards oversee investments in derivatives as part of their general oversight of portfolio management. While derivatives are similar in some ways to other portfolio holdings, their unique benefits, risks, and resource requirements may warrant additional attention from boards.
Publications
Webinars
Third Party Resources
Below are links to additional resources created, published, and maintained by other organizations. They are merely a sample of additional resources for fund directors. IDC does not control, cannot guarantee, and is not responsible for their accuracy, timeliness, or continued availability. These links are provided solely as a service to fund directors and should not be construed as indicating in any way that IDC endorses either the content provided or the third-party providers of any such content.
Securities and Exchange Commission: Investor Bulletin: An Introduction to Options
Regulatory Matters
IDC Letter to SEC Highlights Proper Role of Fund Boards
IDC Supplemental Comment Letter on Liquidity Risk Management and Funds' Use of Derivatives Proposals (pdf)
IDC Seeks Changes to SEC’s Derivatives Proposal to Ensure Proper Oversight Role for Fund Boards
ICI Comment Letter to SEC on Use of Derivatives by Registered Investment Companies and Business Development Companies (pdf)
Washingtion, DC