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Krug, Anita K. --- "Toward better mutual fund governance" [2018] ELECD 843; in Birdthistle, A. William; Morley, John (eds), "Research Handbook on the Regulation of Mutual Funds" (Edward Elgar Publishing, 2018) 185

Book Title: Research Handbook on the Regulation of Mutual Funds

Editor(s): Birdthistle, A. William; Morley, John

Publisher: Edward Elgar Publishing

ISBN: 9781784715045

Section: Chapter 8

Section Title: Toward better mutual fund governance

Author(s): Krug, Anita K.

Number of pages: 20

Abstract/Description:

The chapter contemplates possible ways to improve the governance of mutual funds, focusing specifically on a new model. In this new governance model, multiple funds in a common family are not managed by a single investment adviser but rather by numerous advisers, each managing one or a small number of funds within the organization. The chapter contends that although the new model produces novel risks, there are reasons to believe that it is as least as effective as the traditional model, and may in fact be superior in some ways. Specifically, because the new model produces fewer sources of conflicts of interest than the traditional one, it may strengthen the board’s ability to uphold its fiduciary duties to fund investors.