Collective Investment Funds

Fund Administration

It is a bank’s fundamental duty to administer its CIFs solely in the interest of the bank’s fiduciary customers whose assets are invested in the funds. When a bank makes a determination that a CIF serves as a prudent alternative to an individualized investment strategy for a fiduciary account, it must ensure that the CIF used is appropriate for each account. The duty of loyalty is critical and underlies the administration of a CIF. Successful administration of a CIF equates to providing an investment opportunity that meets the needs of clients in a safe and productive manner while equitably balancing the interests of each CIF participant.

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