The Investment Company Institute's new voluntary guidelines for mutual fund directors could increase the turnover of fund directors by more than one-third in the next five years, according to an industry consultant.

As many as 700 to 800 new independent directors could join mutual fund boards as a result of the new guidelines for fund directors, said C. Meyrick Payne, a senior partner at the consulting firm of Management Practice in New York. That estimate, which Payne described as preliminary, is an increase from the approximately 500 to 600 new directors Management Practice had expected in the next five years because of retirements among fund board members, Payne said. There are currently approximately 3,000 independent fund directors, Payne said.

Subscribe Now

Access to premium content including in-depth coverage of mutual funds, hedge funds, 401(K)s, 529 plans, and more.

3-Week Free Trial

Insight and analysis into the management, marketing, operations and technology of the asset management industry.