MFDF President Discusses ETF Trends in ETF Store Podcast

In a recent podcast episode with The ETF Store, MFDF President Carolyn McPhillips discussed the evolving role of ETF directors and their growing importance as investment products become more complex – particularly in emerging areas like crypto and private assets. Carolyn highlights the responsibilities of fund directors and outlines their duties with respect to the fund and the advisor, including fees, performance, and conflicts of interest, among others. Carolyn further highlights the rise of alternative assets in retail products and how fund directors may become more crucial as products become more complicated. One area of focus for directors is valuation, particularly for harder to value and more illiquid assets like private credit and private equity. She noted the important role the fund director plays to protect 1940 Act registered fund investors, that are not offered in 1933 Act products. Carolyn emphasized that fund directors may need to ask questions about alternative asset classes and products that may differ somewhat from questions asked while overseeing traditional equity or fixed income funds. She added that good communication with the adviser, ensuring proper resources are available, and broad education on these newer asset classes and products are key. The conversation also briefly touched on the recent developments in the offering of a dual-share class, with Carolyn detailing potential areas for increased fund director attention and oversight if the SEC grants exemptive relief.

Click here to listen to the ETF podcast.