Investment Company Institute

Last updated
Investment Company Institute
Formation1940
PurposeTo encourage adherence to ethical standards by industry participants; advance the interests of funds, their shareholders, directors, and investment advisers; and promote public understanding of mutual funds and other investment companies.
Location
  • Washington, DC
Chair
Yie-Hsin Hung
Vice Chairman
George C. W. Gatch
President and CEO
Eric J. Pan
Main organ
Board of governors
Website www.ici.org
Formerly called
National Association of Investment Companies

The Investment Company Institute (ICI) is a global association of regulated funds, including mutual funds, exchange-traded funds, closed-end funds, and unit investment trusts in the United States, and similar funds offered to investors in jurisdictions worldwide. ICI encourages adherence to ethical standards, promotes public financial literacy about funds and investing, and advances the interests of investment funds and their shareholders, directors, and advisers.

Contents

History

Following the stock market crash of 1929 that presaged the Great Depression, Congress passed a series of acts related to securities and financial regulation. [1] One of these, the Investment Company Act of 1940, clearly defined the responsibilities of investment companies. [2] This same year, what would become ICI was established in New York as the National Committee of Investment Companies, an organization to aid in the administration of the act. [3] It became the National Association of Investment Companies (NAIC) in 1941, and then the Investment Company Institute in 1961. [4]

ICI Global

In 2011, ICI expanded internationally with the launch of the London-based ICI Global, which seeks to advance the interests of international funds, managers, and investors, including both regulated U.S. and non-regulated U.S. based funds publicly offered to investors worldwide. [5] In 2013, ICI Global expanded into Asian markets with the opening of an office in Hong Kong, [6] and in 2020, ICI opened an office in Brussels.

Role in regulation and education

As an association made up of U.S. investment companies, including mutual funds, closed-end funds, exchange-traded funds (ETFs), and unit investment trusts (UITs), ICI encourages adherence to ethical standards among its members. [7] [8] [9] It advocates for meaningful disclosure for investors from funds and provides investor education. [10] [11] It also provides data and commentary to the SEC to advise its regulatory process and submits official comment letters and briefs in response to proposals around new financial regulations as well as legal decisions. [12] [13]

ICI's research department includes economists and research analysts who collect and disseminate data on all types of registered investment companies; in 2020, they released more than 300 statistical reports examining various aspects of the industry, as well as 20 research and policy publications. [14] In addition, ICI aims to promote the interests of directors, stockholders, and investment counselors as well as the investment funds themselves. [15] The organization has two continuing professional education programs, including a Continuing Professional Education (CPE) program for Certified Public Accountants and a Continuing Legal Education (CLE) program for attorneys. [16] [17]

Political role

ICI lobbies on behalf of investment companies and sometimes advocates directly to the public on issues important to its members. It also donates to federal candidates through its political action committee. ICI PAC raised $1,676,728, plus $947,200 more, directly for federal candidates during the 2020 election cycle, supporting the reelection of 222 lawmakers on both sides of the aisle. [18]

Membership

ICI membership is open to Securities and Exchange Commission-registered investment companies (mutual funds, closed-end funds, ETFs, and UITs), their investment advisers, and underwriters, as well as investment managers sponsoring regulated funds offered to investors in jurisdictions worldwide. [19] As of September 2020, ICI membership included 8,669 mutual funds, 5,426 closed-end funds, 1,775 exchange-traded funds (ETFs), and 3,262 unit investment trusts (UITs) in the United States, and 17,524 non-U.S. funds. [20] As of January 2022, ICI's members manage total assets of US$32.3 trillion in the United States, serving more than 100 million U.S. shareholders, and US$9.6 trillion in assets in other jurisdictions. [21]

Leadership

ICI is run by a board of governors, responsible for setting policies and overseeing the activities of the organization. [22] The organization's staff is based in its offices in Washington, DC, London, Hong Kong, and Brussels. [21]

Related Research Articles

Passive management is an investing strategy that tracks a market-weighted index or portfolio. Passive management is most common on the equity market, where index funds track a stock market index, but it is becoming more common in other investment types, including bonds, commodities and hedge funds.

An index fund is a mutual fund or exchange-traded fund (ETF) designed to follow certain preset rules so that it can replicate the performance ("track") of a specified basket of underlying investments. While index providers often emphasize that they are for-profit organizations, index providers have the ability to act as "reluctant regulators" when determining which companies are suitable for an index. Those rules may include tracking prominent indices like the S&P 500 or the Dow Jones Industrial Average or implementation rules, such as tax-management, tracking error minimization, large block trading or patient/flexible trading strategies that allow for greater tracking error but lower market impact costs. Index funds may also have rules that screen for social and sustainable criteria.

A mutual fund is an investment fund that pools money from many investors to purchase securities. The term is typically used in the United States, Canada, and India, while similar structures across the globe include the SICAV in Europe, and the open-ended investment company (OEIC) in the UK.

<span class="mw-page-title-main">Fidelity Investments</span> American multinational financial services corporation

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An investment company is a financial institution principally engaged in holding, managing and investing securities. These companies in the United States are regulated by the U.S. Securities and Exchange Commission and must be registered under the Investment Company Act of 1940. Investment companies invest money on behalf of their clients who, in return, share in the profits and losses.

In U.S. financial law, a unit investment trust (UIT) is an investment product offering a fixed (unmanaged) portfolio of securities having a definite life. Unlike open-end and closed-end investment companies, a UIT has no board of directors. A UIT is registered with the Securities and Exchange Commission under the Investment Company Act of 1940 and is classified as an investment company. UITs are assembled by a sponsor and sold through brokerage firms to investors.

<span class="mw-page-title-main">Financial adviser</span> Professional who renders financial services to clients

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<span class="mw-page-title-main">Investment fund</span> Way of investing money alongside other investors

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SBI Mutual Fund is an Indian private asset management company introduced by the State Bank of India (SBI) and incorporated in 1987 with its corporate head office located in Mumbai, India. SBIFMPL is a joint venture between the State Bank of India, an Indian public sector bank, and Amundi, a European asset management company. A shareholder agreement in this regard has been entered on April 13, 2011, between SBI & AMUNDI Asset Management. Accordingly, SBI currently holds 63% stake in SBIFMPL and the 37% stake is held by AMUNDI Asset Management through a wholly owned subsidiary, Amundi India Holding. SBI & AMUNDI Asset Management shall jointly develop the company as an asset management company of international repute by adopting global best practices and maintaining international standards.

<span class="mw-page-title-main">CI Financial</span> Largest investment management firm by assets under management in Canada

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References

  1. ↑ "Wisconsin Department of Financial Institutions". Wdfi.org. Retrieved 2013-08-26.
  2. ↑ "Investment Company Act of 1940". Personal.psu.edu. 2012-11-27. Retrieved 2013-10-08.
  3. ↑ Kroszner, Randall S.; Shiller, Robert J. (28 January 2011). Reforming U.S. Financial Markets - Kroszner, Randall S., Shiller, Robert J. - Google Books. ISBN   9780262294904 . Retrieved 2013-08-26.
  4. ↑ e. Denby Brandon, Jr; Oliver Welch, H. (2009-09-17). The History of Financial Planning: The Transformation of Financial Services - E. Denby Brandon, Jr., H. Oliver Welch - Google Books. ISBN   9780470553794 . Retrieved 2013-08-26.
  5. ↑ Benjamin, Jeff (October 11, 2011). "ICI extends reach with global launch". Investment News. Retrieved 5 November 2013.
  6. ↑ Flood, Chris (2013-02-24). "ICI Global to open Hong Kong office" . FT.com. Archived from the original on 2022-12-11. Retrieved 2013-11-07.
  7. ↑ "Investment Company Institute: Private Company Information - Businessweek". Investing.businessweek.com. Archived from the original on January 28, 2012. Retrieved 2013-10-08.
  8. ↑ Aven, Paula (2012-04-26). "Spark Institute, ICI update fee disclosure glossary". BenefitsPro. Retrieved 2013-10-28.
  9. ↑ "About". Iifaneworleans2013.org. Retrieved 2013-10-08.
  10. ↑ "General Counsel Testifies on 401(k) Plan Disclosure at ERISA Hearing, September 2004". ICI. Archived from the original on 2013-12-16. Retrieved 2013-08-26.
  11. ↑ "Investment Company Institute |". Thetrustadvisor.com. Archived from the original on 2013-12-16. Retrieved 2013-08-26.
  12. ↑ "Regulation in a Global Financial System". SEC.gov. Archived from the original on 2013-10-23. Retrieved 2013-11-07.
  13. ↑ "Comment Letters". ICI. Retrieved 2013-11-07.
  14. ↑ "2017 Investment Company Fact Book". Icifactbook.org. Archived from the original on 2018-04-10. Retrieved 2018-04-09.
  15. ↑ "What Is the Investment Company Institute?". Wisegeek.net. Retrieved 2013-08-26.
  16. ↑ "Continuing Professional and Legal Education (CPE and CLE)". ICI. Archived from the original on 2013-09-07. Retrieved 2013-08-26.
  17. ↑ "Other Links". Cffp.edu. Archived from the original on 2013-08-05. Retrieved 2013-08-26.
  18. ↑ "2020 ICI Annual Report". 2020ici.org. Retrieved 2021-02-10.
  19. ↑ "Criteria for Membership". ICI. Archived from the original on 2019-01-29. Retrieved 2019-03-19.
  20. ↑ "2020 Annual Report to Members". ICI. Retrieved 2021-02-10.
  21. 1 2 "About ICI". Ici.org. Retrieved 2021-02-10.
  22. ↑ "Board & Leadership". ICI. Archived from the original on 2013-08-13. Retrieved 2013-08-26.
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