The advisor manages the fund’s assets in accordance with the fund’s investment objectives and policies. By choosing RBB, the investment advisor can focus primarily on managing the investment portfolio and raising assets while outsourcing other responsibilities related to servicing the fund.
BOARD OF DIRECTORS
The RBB Fund has in place a Board of Directors who oversee the fund’s activities. The Board is charged with duties of care and loyalty, approving policies and procedures designing to address the fund’s compliance with federal securities laws, and undertaking oversight and review of the fund’s performance. In addition, the Board is responsible for reviewing and approving the arrangements with the fund’s investment advisors and other service providers. The Board has oversight responsibility for decision making regarding RBB Fund.
CHIEF COMPLIANCE OFFICER
The chief compliance officer (CCO) implements and monitors the fund’s compliance program. The CCO reviews the fund’s compliance policies and procedures; analyzes compliance issues for the fund; and interfaces with the Board of Directors, management, investment advisors, auditors, legal counsel, and service providers. The current CCO is selected by, and reports to, the Board of Directors. The CCO is an experienced investment management company attorney, has a current CPA license, and is a member of the ICI’s chief compliance officer subcommittee.
FUND OFFICERS / EXECUTIVE MANAGEMENT
The fund’s executive officers are experienced individuals who are responsible for the overall fund organization and operations. Management of the ongoing organization and coordination of the efforts of the external service providers for the benefit of the fund complex is a collaborative effort amongst the fund’s officers, Board of Directors, fund council, auditors and investment advisors. The fund’s executive officers certify to the SEC on Forms N-CSR and N-Q, and manages the affairs of the fund on a day-to-day basis.
INDEPENDENT PUBLIC ACCOUNTANT
Mutual funds must publish annual financial statements audited by independent public accountants. The independent public accountant audits the fund’s financial statements, reviews the fund’s systems of internal controls and procedures, and provides professional accounting options. Global independent public accounting firms have been retained by the board of Directors and are in place for RBB.
Fund counsel provides legal counsel to the fund, represents the fund in legal matters, and interacts with the SEC on fund filings and regulatory matters. Drinker Biddle & Reath has been appointed by the Board of Directors and is in place for RBB.
ADMINISTRATOR/ACCOUNTING SERVICE PROVIDER
The unaffiliated fund administrator / accountant service provider with a successful history of servicing 1940 ACT registered mutual funds, dedicates an entire team to RBB. Under this approach, a relationship manager is appointed and oversees a dedicated team of service professionals. This relationship manager is accountable for delivering client satisfaction and staying attuned to RBB’s needs.
Fund accounting and recordkeeping. The fund accounting service provider maintains fund accounting records in accordance with the 1940 Act record keeping requirements; prepares fund balance sheets and statements of operations; calculates expense accruals, net income, capital gains/losses, and dividend distributions.
Administration Services. Subject to the terms, conditions and limitations of the relevant services agreement, prepares and files required forms with the SEC, prepares annual and semiannual reports and reports and registration statements, and coordinates the printing, filing, and mailing of each. Prepares and coordinates board materials and administers regular and special meeting. Also assists in the development of proxy materials and monitors compliance with each state’s Blue Sky laws.
Tax Services. Prepares wash sale analyses and calculates the dividend distributions seeking to ensure that income and net capital gains are distributed in compliance with Subchapter M and excise tax rules. They also prepare and file federal, state, and excise tax returns and obtains tax identification numbers for funds, as well as calculates and monitors foreign withholding taxes and tax reclaims.
A transfer agent maintains records of shareholder accounts. Offering a full range of customized mutual fund recordkeeping and shareholder services, the transfer agent handles all types of transactions related to a mutual fund shareholder account. From reviewing new applications to processing dividend and capital gain distributions and mailing certain year-end tax and statement information.
The custodian, which is responsible for safekeeping the fund’s assets, maintains the fund’s securities and cash, which are segregated from the custodian’s own securities. The custodian is responsible or recording all monies that flow through the fund.
The Custodian maintains daily cash activity, processes trade instructions, disburses fund expenses and payments, and produces a complete record of transactions and asset activity. Facilitates timely notification and response for corporate actions, offering web-enabled capabilities for ease of tracking and response.
Most mutual funds continuously offer new shares to the public at a price based off the current value of fund net assets plus any sales charges. Investors buy and redeem fund shares either directly or indirectly through a third party known as a principal underwriter.
The principal underwriter prepares and executes sales and servicing agreements. It also reviews proposed sales and marketing materials for compliance with SEC and Financial Industry Regulatory Authority (FINRA) regulations. The principal underwriter also files the sales literature with FINRA for their review. Finally, the principal underwriter monitors the accruals and disbursements out of the 12b-1 plan and in turn reports activity to the Board of Directors.