Investment Company Institute

Written by Shirley Parker
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The Investment Company Institute (ICI) has been in existence since 1940, when it was founded in New York as the National Committee of Investment Companies. In 1940, 68 mutual funds and 43 closed-end funds were among its members. Fund industry assets totaled $2.1 billion. The following year, the committee's name changed to National Association of Investment Companies, or NAIC.

Membership eligibility was expanded to include underwriters and mutual fund advisers in 1961. At the same time, NAIC's name became the current Investment Company Institute. Nine years later, ICI moved from New York to Washington, DC. In 1985, unit investment trusts were made eligible for membership. Recent membership statistics show 8,546 mutual funds, 644 closed-end funds, and 144 exchange-traded funds. There are five member sponsors of unit investment trusts. Mutual fund members alone manage investor assets of around $7.890 trillion.

Any SEC-registered investment company may apply for membership in ICI, as may its underwriter and investment adviser, if they so choose. Many do elect to belong to ICI because of the high ethical standards that members must adhere to and represent. After the stock market disasters of the 1920s and 1930s, the public has needed the security of sound, enforceable regulations and honest fiduciary behavior.

ICI's Core Missions

ICI has three stated core missions. In addition to encouraging the above-mentioned adherence to very high ethical standards, ICI advances the interests of the various funds and their shareholders. They also take seriously the education of the public regarding mutual funds and companies that invest in other areas.

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