In Fund Board Views, Investment Management Partner Paulita Pike Discusses Fund Directors' Fiduciary Duties
A Dec. 14 piece published by Fund Board Views titled “Index funds: Has Bogle IDed solution in search of problem?” reports on a recent article by The Wall Street Journal, in which index fund creator Jack Bogle advocates for the "Enact[ment of] federal legislation making it clear that directors of index funds and other large money managers have a fiduciary duty to vote solely in the interest of the funds’ shareholders.
In Fund Board Views investment management partner Paulita Pike points out that fund directors' fiduciary duties already are adequately governed by state law. "The current framework has worked well since inception, and I don’t think that the way to address some of the concerns raised in the article is through the articulation of a new federal standard. State law fiduciary duties are well understood, and I don’t believe there is anything in the fund industry meriting a supplement to what is currently in place," Ms. Pike stated to FBV.