Proprietary fund

Proprietary Fund

A mutual fund sponsored and managed by a certain financial institution. For example, all funds managed by Bank XYZ are considered Bank XYZ's proprietary funds. While some financial institutions offer other institutions funds along with their own, many only sell their own proprietary funds to investors.

Proprietary fund.

Proprietary mutual funds are offered for sale by the financial institution -- such as a bank, investment company, or brokerage firm -- that sponsors the funds.

Characteristically, the funds' names include the name of the institution. For example, a hypothetical bank called Last Bank might offer a Last Bank Growth Fund or a Last Bank Capital Appreciation Fund.

Some institutions market only their proprietary funds, while others offer both their own funds and funds sponsored by others.

References in periodicals archive ?
20, Accounting and Financial Reporting for Proprietary Funds and Other Governmental Entities That Use Proprietary Fund Accounting, provides interim guidance on business-type accounting and financial reporting for proprietary funds and governmental entities that use proprietary fund accounting.
The format of the proprietary fund statement of activities, known as the statement of revenues, expenses, and changes in net assets, highlights the extent to which an enterprise fund has been successful at meeting its cost-recovery target.
GASB standards currently require an entity to present a combined statement of revenues, expenditures and changes in fund balances for all government fund types and a combined statement of revenues, expenses and changes in retained earnings for proprietary fund types.
The ED would have classified this new "permanent fund" type as a proprietary fund for fund reporting purposes, but would have included the balances and activities of any such funds within the "governmental activities" category for entity-wide reporting purposes.
In April, the GASB issued a proposed statement on Accounting and Financial Reporting for Proprietary Funds and Other Governmental Entities That Use Proprietary Fund Accounting.