Closed End Funds and Closed End Fund Advisers
Closed End Fund Compliance Services
Vigilant is an Award Winning and leading Compliance firm to Closed End Funds serving as CCO to Start Up Closed End Funds to those with over $40 Billion in AUM.
When managing Compliance Programs for Closed End Funds, Vigilant follows the following process below for each of its clients.
Vigilant’s Closed End Fund Group currently serves as Outsourced CCO and CFO providing guidance and advising on regulatory, operational and governance matters that include the following:
- Adviser CCO and CFO Support Services
- Outsourced Fund CCO and CFO/PFO Services
- Investment Adviser Compliance and Oversight
- Fund Registration Support
- Service Provider Selection and Due Diligence
- Service Provider Integration and Coordination
Our Closed End Fund Group is comprised of experienced and highly qualified professionals with extensive experience in the Investment Management industry.
The Team has served in senior roles for Investment Advisers and Investment Companies as well as senior business advisers for Compliance Consulting and Public Accounting Firms.
A critical component to the effective performance of the CCO function is oversight of Service Providers (Fund Adviser, Fund Accountant, Fund Administrator, Custodian, Transfer Agent, Distributor, and Principal Underwriter). Fund Compliance with the Investment Company Act of 1940, the Securities Exchange Act of 1934, the Securities Act of 1933, and other Regulations takes careful analysis and planning which is a core focus of Vigilant for their Fund clients.
Types of Closed-End Funds Vigilant can Provide CCO and CFO Services for:
Interval Funds and Tender Offer Funds
Interval Funds and Tender Offer Funds represent subsets of Closed-End Funds. These Funds, under Rule 415 and Rule 486 under the Securities Act of 1933 and Rule 23c-3 under the Investment Company Act of 1940, may continuously offer their shares and make offers to repurchase shares at net asset value (NAV).
Equity Oriented Closed-End Funds
All Equity Closed-End Funds are subject to the risk that the portfolio securities held by the Fund will decline in value, thus causing a decline in the Fund’s NAV and market price. The value of a particular stock in a Fund’s portfolio may increase or decrease for a variety of reasons, including the business activities and financial condition of the issuer of the stock, market and economic conditions affecting the issuer’s business, or the stock market generally.
Fixed-Income Oriented Closed-End Funds
All Fixed-Income Closed-End Funds are subject to some degree of market risk and credit risk. Market risk is the risk that interest rates will rise, lowering the value of Bonds held in the Fund’s portfolio. Generally speaking, the longer the remaining maturity of a Fund’s portfolio securities, the greater the volatility of its NAV due to market risk. Credit risk is the risk that issuers of bonds held by the Fund will default on their promise to pay principal and interest. A Bond Closed-End Fund’s investment policies typically define the credit quality and maturity of the investments the Fund may make.
Frequently Asked Questions
Click on a question below to view answers to questions Vigilant frequently receives.
Can Vigilant serve as both Fund CCO and Adviser CCO?
Yes, Vigilant can serve as both Fund CCO and Adviser CCO or provide support in either role independently.
Can you help with new fund launches and registration support?
Yes. Vigilant supports Firms launching new Closed-End Funds by providing compliance guidance throughout the registration process and into its on-going compliance operations.
Can support evolve as additional funds or strategies are introduced?
Whether your organization is expanding its fund lineup or introducing new investment strategies, Vigilant can adapt its Compliance Services to meet your needs.
How can Vigilant help fund sponsors prepare for the operational demands of launching a Closed-End Fund?
Launching a Closed-End Fund requires thoughtful planning and coordination across multiple compliance functions. Vigilant works with Fund Sponsors to help establish a strong compliance foundation for long-term success.
If you are a Private Fund Manager contemplating your first Registered Fund launch, here is a helpful Vigilant Insights release: Why Private Fund Managers are Turning to Closed-End Funds
Does Vigilant serve as statutory distributor for closed-end funds?
Yes. Our Statutory Distributor Services are designed to support Closed-End Funds with their on-going regulatory responsibilities.
Contact Vigilant
Vigilant is prepared to help your business grow with Closed End Funds and build a strong compliance program, whether that be for the Fund, Adviser, or both the Fund and Adviser.
With team members in New York, Philadelphia, Boston, Texas, Metro Washington, D.C., Pittsburgh, Tennessee, Georgia, Florida and around the nation, Vigilant is well positioned to help your business create and sustain an effective Closed End Fund Compliance Program.
Contact Vigilant today to learn more about how we can help with a new Fund launch or on-going Compliance.
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