Dear Board Doc: How Do I Join a Mutual Fund Board?

The MFDF’s Board Doc is an occasional feature of the Daily News Feed that features questions from our readers. The answers and commentary provided in our responses do not constitute legal advice and should not be treated as such. Please consult with your independent counsel on questions of compliance with the securities laws and director fiduciary duties. If you would like the Board Doc to consider your questions, please e-mail BoardDoc@mfdf.org.

Q. I would like to become a mutual fund director. Besides leveraging my professional network, what are some other ways I can prepare to join a mutual fund board?

A. Finding a mutual fund board seat can be challenging in this era of industry consolidation. The number of open board seats is not increasing by any means, but as current directors reach retirement age there will be opportunities for tenacious candidates. Keeping in touch with your contacts who are on boards, as well as those who are trusted advisors to the board (such as attorneys and accountants), is a great place to start. You may also consider serving on a non-profit board or a corporate board, as many fund boards tend to favor candidates who have previous director experience. To broaden your exposure to fund boards seeking candidates, you may also list a profile in the Forum’s Director Candidate Database, which member fund boards use to identify well-qualified candidates for open board seats. Once your profile is created, that process is very passive and will continue running in the background as you continue networking and participating in professional development to prepare you for board work.

Resources: CONSIDERATIONS FOR BOARD CANDIDATES https://www.mfdf.org/docs/default-source/fromjoomla/DirResPDFs/Newer_Director_2013.pdf