Karen Hammond
About Karen Hammond
Independent Trustee (since 2021) of NYLI MacKay DefinedTerm Muni Opportunities Fund (MMD). Year of birth: 1956. She has over 30 years of investment management experience, primarily at Fidelity Investments (1993–2013), including COO of Fidelity Investments Japan (2001–2003), Corporate Treasurer of FMR Corp. (2003–2005), SVP of Investment Services at Fidelity Management & Research (2005–2007), and Managing Director of Devonshire Investors (Fidelity’s private equity group) (2007–2013). She is a CFA charterholder (since 1987) and has served as an Audit Committee Financial Expert. She was an Advisory Board Member for the complex in June–Dec 2021 before joining the Board in Dec 2021, and currently oversees 86 portfolios in the fund complex.
Past Roles
| Organization | Role | Tenure | Committees/Impact |
|---|---|---|---|
| Fidelity Investments Japan | Chief Operating Officer | 2001–2003 | Senior operating leadership in international business operations |
| FMR Corp. (Fidelity) | Corporate Treasurer | 2003–2005 | Corporate finance leadership |
| Fidelity Management & Research Co. | SVP, Investment Services | 2005–2007 | Oversaw investment services for asset manager |
| Devonshire Investors (Fidelity PE group) | Managing Director | 2007–2013 | Private equity investing leadership |
| Fidelity Investments (broader career) | Senior roles across trading, research, and portfolio support | 1993–2013 | 30+ years industry experience |
External Roles
| Organization | Role | Tenure |
|---|---|---|
| Two Harbors Investment Corp. (public mortgage REIT) | Director | Since 2018 |
| Blue Cross Blue Shield of Rhode Island (non-profit) | Director | Since 2019 |
| Rhode Island State Investment Commission | Member | Since 2017 |
| Various REITs | Director | Beginning in 2014 |
Board Governance
- Independence: Classified as an Independent Trustee; also designated an Audit Committee Financial Expert for the fund complex. The Board has an Independent Chair and a committee structure supporting independent oversight.
- Tenure at MMD: Trustee since December 2021; Advisory Board Member June–Dec 2021.
- Current committee roles (FY ended May 31, 2025):
- Contracts Committee – Chair; 6 meetings held.
- Audit Committee – Member; 7 meetings held; committee chaired by Alan R. Latshaw.
- Investment Committee – Member; 8 meetings held.
- Nominating & Governance Committee – Member; 6 meetings held.
- Prior: Chair, Risk & Compliance Oversight Committee (2021–2024).
- Board meeting cadence and attendance (FY2025): Board held 9 regular meetings; each Trustee then in office attended at least 75% of aggregate Board and applicable committee meetings; six Trustees attended the 2024 annual shareholder meeting.
- Refreshment policy: Independent Trustees must tender resignation by the end of the year in which they turn 75 or reach 15 years of service (subject to exceptions).
- Compensation oversight: Nominating & Governance Committee reviews Trustee compensation level and types (policy and annual review).
Committee Assignment Snapshot (FY2025)
| Committee | Role | Meetings (FY2025) |
|---|---|---|
| Contracts | Chair | 6 |
| Audit | Member (AC Financial Expert at complex level) | 7 |
| Investment | Member | 8 |
| Nominating & Governance | Member | 6 |
Fixed Compensation
The fund discloses Independent Trustee compensation as cash-based retainers and per-meeting fees allocated pro-rata across the fund complex. The Chair of the Board receives an additional annual fee; Trustees are reimbursed for meeting-related expenses.
| Metric (FY ended May 31, 2025) | Amount |
|---|---|
| Aggregate Compensation from MMD | $1,477 |
| Total Compensation from Fund Complex | $390,000 |
| Pension/Retirement Benefits Accrued as Part of Fund Expenses | None |
| Compensation structure notes | Annual retainer + fee per regularly scheduled Board and associated committee meetings; additional Chair fee; pro-rata by fund net assets |
Performance Compensation
| Item | Disclosure |
|---|---|
| Performance-based cash bonus | Not disclosed for Independent Trustees; compensation described as retainer and meeting fees |
| Equity awards (RSUs/PSUs) | Not disclosed for Independent Trustees |
| Option awards | Not disclosed for Independent Trustees |
| Performance metrics tied to pay | Not disclosed for Independent Trustees |
Other Directorships & Interlocks
| Company/Organization | Type | Role | Start |
|---|---|---|---|
| Two Harbors Investment Corp. | Public company (mortgage REIT) | Director | 2018 |
| Blue Cross Blue Shield of Rhode Island | Non-profit/health insurer | Director | 2019 |
| Rhode Island State Investment Commission | Public pension CIO oversight body | Member | 2017 |
| Various REITs | Public REITs | Director | 2014 (began) |
- Interlocks/conflicts: No related-party transactions disclosed for Trustees in the proxy; Contracts Committee oversight provides a structured process for reviewing fund contracts and mitigating potential conflicts.
Expertise & Qualifications
- CFA Charterholder since 1987.
- Audit Committee Financial Expert (investment company complex).
- Deep buy-side operating experience: COO (Fidelity Japan), Corporate Treasurer (FMR), SVP Investment Services (FMR Co.), MD (Devonshire Investors/private equity).
- Multi-board oversight across financial services and healthcare organizations; member of a state investment commission.
Equity Ownership
| As of May 31, 2025 | Disclosure |
|---|---|
| Dollar range of equity securities in MMD | None |
| Aggregate dollar range across all registered investment companies overseen in the complex | Over $100,000 |
Insider Trades and Beneficial Ownership Filings
| Form | Filing/Effective Date | Relationship at Filing | Non-Derivative Holdings Reported |
|---|---|---|---|
| Form 3 (Initial Statement) | 06/16/2021 | Advisory Board Member | Shares of beneficial interest: 0 (Direct) |
Governance Assessment
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Strengths
- Independent Trustee with Audit Committee Financial Expert designation; brings treasury, operations, and private equity expertise—additive for audit, contracts, and investment oversight.
- High engagement signals: Chair of Contracts Committee; member of Audit, Investment, and Nominating & Governance; prior chair of Risk & Compliance Oversight (2021–2024).
- Attendance threshold met (≥75% for FY2025 Board/committees).
- Board features Independent Chair and structured risk/compliance oversight via committees and CCO/CRO reporting, supporting effective governance.
-
Potential Risk Indicators
- No personal holding disclosed in MMD (dollar range “None”), though she holds over $100,000 across the fund family—alignment is diversified at complex level rather than fund-specific. Considered a neutral-to-slight alignment gap for single-fund investors.
- Multiple external commitments (public and non-profit boards; state commission) raise time-commitment considerations, though no attendance shortfall is indicated.
- No related-party transactions, pledging, or hedging disclosures specific to Trustees are noted in the proxy; ongoing Contracts Committee oversight mitigates conflict risk.
-
Refreshment/Succession
- Board Service Policy requires Independent Trustees to tender resignation at age 75 or after 15 years of service (with exceptions), supporting refreshment.
Overall: Hammond’s profile combines independent status, financial/audit expertise, and significant committee leadership—favorable to investor confidence. The main watchpoint is fund-level ownership (none in MMD), partially offset by substantial complex-wide exposure and active committee workload.