NDLI: Independence and focus of Luxembourg UCITS fund boards

Content Provider	Springer Nature Link
Author	Hazenberg, Jan Jaap
Copyright Year	2013
Abstract	Investment funds are potentially plagued by principal-agent problems between investors and fund management companies, in particular with respect to fees. Market forces play a role in mitigating these problems, but based on existing empirical studies, there can be doubts about whether these forces are sufficient for protecting investor interests. When market forces fail, there is room for fund boards to add value for investors. U.S. funds have mandatory independent directors who are empowered to be the watchdogs for the fund investors, negotiating fees with the fund management company on their behalf. This is not the case for Luxembourg funds that are established in accordance with the EU Undertakings for Collective Investment in Transferable Securities (UCITS) Directive. This study uses a sample of Luxembourg UCITS funds and shows that, although there is no regulatory requirement, approximately half of the sample funds have appointed at least one independent board member. A survey among board members of the sample funds showed that, in the absence of the requirement to negotiate fees with the fund management company, Luxembourg boards give relatively low priority to costs, which they see as primarily the responsibility of the promoter, leaving the monitoring to market forces. This finding is irrespective of whether or not the board has (semi-) independent board members.
Starting Page	117
Ending Page	155
Page Count	39
File Format	PDF
ISSN	09291261
Journal	European Journal of Law and Economics
Volume Number	41
Issue Number	1
e-ISSN	15729990
Language	English
Publisher	Springer US
Publisher Date	2013-06-26
Publisher Place	New York
Access Restriction	One Nation One Subscription (ONOS)
Subject Keyword	Investment funds Agency theory European Union Governance Board of directors Board independence Fund costs Law and Economics European Integration Public Finance & Economics Commercial Law
Content Type	Text
Resource Type	Article
Subject	Business and International Management Law Economics and Econometrics

Sl.	Authority	Responsibilities	Communication Details
1	Ministry of Education (GoI), Department of Higher Education	Sanctioning Authority	https://www.education.gov.in/ict-initiatives
2	Indian Institute of Technology Kharagpur	Host Institute of the Project: The host institute of the project is responsible for providing infrastructure support and hosting the project	https://www.iitkgp.ac.in
3	National Digital Library of India Office, Indian Institute of Technology Kharagpur	The administrative and infrastructural headquarters of the project	Dr. B. Sutradhar bsutra@ndl.gov.in
4	Project PI / Joint PI	Principal Investigator and Joint Principal Investigators of the project	Dr. B. Sutradhar bsutra@ndl.gov.in Prof. Saswat Chakrabarti will be added soon
5	Website/Portal (Helpdesk)	Queries regarding NDLI and its services	support@ndl.gov.in
6	Contents and Copyright Issues	Queries related to content curation and copyright issues	content@ndl.gov.in
7	National Digital Library of India Club (NDLI Club)	Queries related to NDLI Club formation, support, user awareness program, seminar/symposium, collaboration, social media, promotion, and outreach	clubsupport@ndl.gov.in
8	Digital Preservation Centre (DPC)	Assistance with digitizing and archiving copyright-free printed books	dpc@ndl.gov.in
9	IDR Setup or Support	Queries related to establishment and support of Institutional Digital Repository (IDR) and IDR workshops	idr@ndl.gov.in

The performance effect of corporate board of directors

European integration from the agency theory perspective

CEO qualities and codes of ethics

The link between supervisory board reporting and firm performance in Germany and Austria

The effect of board size and composition on European bank performance

(Non-)complexity through the eyes of MiFID

Is Transaction Cost Economics Applicable to Public Governance?

Employee representation and board size in the Nordic countries

Board composition and corporate governance–A multivariate analysis of listed Danish firms

Independence and focus of Luxembourg UCITS fund boards

Similar Documents

The performance effect of corporate board of directors

European integration from the agency theory perspective

CEO qualities and codes of ethics

The link between supervisory board reporting and firm performance in Germany and Austria

The effect of board size and composition on European bank performance

(Non-)complexity through the eyes of MiFID

Is Transaction Cost Economics Applicable to Public Governance?

Employee representation and board size in the Nordic countries

Board composition and corporate governance–A multivariate analysis of listed Danish firms

Independence and focus of Luxembourg UCITS fund boards