Mutual Funds and Retirement Plans

Question 1

A covered member who owns shares in a mutual fund has a _____financial interest in the fund itself.

Answer 1

Direct

Question 2

If the member owns 5% or less of the outstanding shares of a diversified mutual fund, the interest in the underlying investments of the fund is ____. Immaterial and ____ interests do not impair independence.

Answer 2

Indirect

Question 3

When a defined benefit plan is involved, interests held by the plan are not interests held by the covered members unless the covered members (or their immediate family members) are _____of the plan or otherwise have the ability to supervise or participate in the plan’s investment decisions.

Answer 3

Trustees