What is the 'Investment Company Institute - ICI'

Investment Company Institute (ICI) is the trade association for American and international investment companies, including mutual funds, closed-end funds, exchange-traded funds and unit investment trusts.

BREAKING DOWN 'Investment Company Institute - ICI'

Investment Company Institute (ICI) is the trade association for regulated fund companies. Based in Washington, D.C., ICI serves U.S. funds as well as similar funds offered to investors around the world.  Membership in ICI is open to investment companies registered with the Securities and Exchange Commission, including mutual funds, closed-end funds, exchange-traded funds and unit investment trusts.

ICI’s mission includes three primary goals: to promote public understanding of mutual funds and other investment companies, to encourage adherence to high ethical industry standards, and to advance the interests of investment funds and their stakeholders.

As of 2018, ICI fund members managed $21.8 trillion in assets in the U.S., serving more than 100 million shareholders, and $7.6 trillion in other jurisdictions. The international arm, ICI Global, operates serves non-U.S. jurisdictions through offices in London, Hong Kong and Washington D.C.

ICI publishes regular reports and industry updates for its members, including its annual Fact Book, which tracks the rapid year-to-year evolutions of the investment industry.  Additionally, ICI provides representation for its member organizations regarding policy research, legislation, taxation, regulation changes, statistics, operations, economic analysis and public information sharing.

History of ICI

ICI was first formed during the New Deal as the agency commissioned to administer the Investment Company Act of 1940. Designed to clearly define the responsibilities and activities of investment companies, this act launched the creation of the National Committee of Investment Companies in New York. A year later, in 1941, the organization changed its name to the National Association of Investment Companies (NAIC). In 1961, the organization changed its name again to the Investment Company Institute.

The organization known as National Association of Investors Corporation is an unrelated agency.

At its inception in 1941, members included 68 mutual funds and 43 closed-end funds, and assets for the fund industry totaled $2.1 billion. In 1943, the organization instituted its first public information program and in 1958 published its first statistical summary, which would later evolve in the annual ICI Investment Company Fact Book report. In 1959, the organization held its first general membership meeting, and in 1961 instituted its name change. That same year, ICI opened its membership to underwriters and advisors of mutual funds. In 1970, ICI moved its headquarters from New York to Washington, D.C.

RELATED TERMS
  1. Investment Company

    An investment company is a corporation or trust engaged in the ...
  2. Institutional Fund

    An institutional fund is a fund with assets invested by institutional ...
  3. Fund Company

    Fund company is a commonly used term to describe a corporation ...
  4. Institutional Investor

    An institutional investor is a nonbank person or organization ...
  5. Pooled Funds

    Pooled funds aggregate capital from a number of investors, as ...
  6. Open-End Fund

    Open-end funds sell shares directly to investors based on their ...
Related Articles
  1. Financial Advisor

    Why You Should Consider These Closed-End Funds

    Advisors looking to recommend closed-end funds to clients might want to consider ones that have withstood the test of time. Here are a few examples.
  2. Investing

    Trading Mutual Funds for a Living: Is It Possible?

    Find out why trading mutual funds for a living isn't your best bet, including how funds discourage short-term trading and which options may better serve you.
  3. Investing

    Top 5 Mutual Fund Companies by Customer Service (BLK, DB)

    Find out which mutual fund companies receive the highest satisfaction ratings from their clients for providing the best customer service.
  4. Financial Advisor

    Will ETFs Eventually Replace Mutual Funds?

    Will mutual funds be replaced by ETFs? Possibly, but it's not too likely and probably not anytime soon.
  5. Investing

    The Advantages and Disadvantages of Mutual Funds

    As with most investments, mutual funds have both advantages and disadvantages.
  6. Investing

    How Fund Fees Impact Your Portfolio

    Choosing lower cost ETFs over mutual funds can make a big difference to a portfolio in the long term.
  7. Financial Advisor

    5 Characteristics of Strong Mutual Fund Shares

    Discover some of the basic characteristics shared by good mutual funds that investors can use to help them in selecting funds.
  8. Investing

    Are Mutual Funds A Relic?

    We list some options other than mutual funds for your retirement plan.
RELATED FAQS
  1. What Was the First Mutual Fund?

    Many trace the creation of the first mutual fund back to Dutch merchant Adriaan Van Ketwich. Read Answer >>
Trading Center