Investment fund management reports help clients to get vital information about their investments in a consistent and accessible manner. These reports present the performance data in various ways (MTD) QTD, YTD and YTD) and are usually combined with information on risk analysis like VaR or stress testing. As regulations are increasing, managers are required to present their risk management processes in more detail than before.
Investors are increasingly interested in knowing what they pay for fund investments. This is evident by the demand for more precise information about fund fees. Some funds define management fees in a narrow way and only include costs related to selecting the right securities for their portfolio in this number. Other funds have "unified fees" that cover a range of costs, including records and administrative services, brokerage commissions and 12b-1 fee.
Many funds have breakpoint agreements, where the management fee is reduced at specific asset intervals based on the total assets of the fund. To assess these contracts, investors should be aware of the management fee for each of those intervals. The GAO suggests that the Commission require that funds provide fee information per share at the class level, as well as revealing any fees that are paid from the principal, but not the management fee.
The GAO has also suggested that the Investment Company Act require that independent directors (directors not associated with the management of the fund) comprise at least a majority of a fund board. This is intended to ensure that independent directors are able to effectively represent the interests of shareholders of funds.