Welcome to the Financial Times Lexicon

Browse thousands of words and phrases selected by Financial Times editors and suggest new terms for the glossary.

 

Term of the day

profitability (in the fiduciary duty/15c sense)

For U.S. mutual funds, Section 15(c) of the Investment Company Act requires a fund’s directors to take profitability into account when they approve the contract between the fund and its investment adviser.

In this sense, directors acting in a fiduciary manner have a huge amount of control over the prices charged by the adviser to funds.