April 19, 2017
CFA Institute Issues Guidance Statement on Broadly Distributed Pooled Funds
The CFA Institute has recently released a guidance statement on broadly distributed pooled funds for firms that manage one or more pooled funds and influence the official pooled fund documents or fund-specific marketing materials. A broadly distributed pooled fund is defined as a fund which is publicly available to multiple investors without a minimum quantity of investors required. This guidance statement includes both requirements and recommendations for the content and distribution of information given to prospective pooled fund investors. The CFA Institute hopes that this guidance will provide clarity around related pooled fund materials for firms claiming compliance with the Global Investment Performance Standards (“GIPS®”).REQUIREMENTSThe following items are required to be included in the official pooled fund document or the fund-specific marketing materials given to
If a firm deems that it is unable to satisfy these conditions due to regulatory conflicts, their determination must be disclosed in their policies and procedures.RECOMMENDATIONS
The following items are recommended by the guidance statement to be included in official pooled fund documents or fund-specific marketing materials:
WHAT DOES THIS MEAN FOR ME?
The requirements and recommendations provided in the guidance statement will become applicable beginning on January 1, 2018. Firms that claim to be GIPS compliant and manage pooled funds should carefully review all official documents and marketing materials related to this investment vehicle. These firms should guarantee that, at a minimum, they abide by the requirements issued in the guidance statement. Please contact Fairview® with any questions or concerns you might have around the CFA’s recent guidance statement.