#4 Broad Distribution Pooled Fund

'A POOLED FUND that is publicly available to multiple investors, with no or minimal personal contact between the FIRM managing the POOLED FUND and the PROSPECTIVE INVESTOR' Click to Tweet

Full Definition

This term is defined as A POOLED FUND that is publicly available to multiple investors, for which the typical marketing practice involves no or minimal personal contact between the FIRM managing the POOLED FUND and the POOLED FUND PROSPECTIVE  INVESTOR. These funds are typically sold to the general public and are highly regulated.” in the GIPS 2020 Exposure Draft.

Key Points about This Term

  1. This term is relatively new as it has been limited to the development of the Guidance Statement on Broadly Distributed Pooled Funds, scheduled to become effective on January 1, 2020.
  2. With the formal incorporation of pooled funds into the GIPS 2020 and the development of specific Standards related to them, this term is scheduled to become common in the GIPS vocabulary, in line with its use globally as a common investment vehicle.
  3. Fun Fact – It appears twenty-one (21) times in the Exposure Draft, excluding its appearance in the definitions and executive summary.
  4. Possible Evolution under new Standards – The concept of such funds is here to stay with specific Standards as well as its own guidance statement further explaining its use and other best practices that are not specific standards, but the actual name may change if sufficient comments are received by the global investing public. This happens to be the first comment requiring feedback in the Exposure Draft.