Richard S. Trutanic
About Richard S. Trutanic
Independent Class III Trustee of NYLI MacKay DefinedTerm Muni Opportunities Fund (MMD) since 2011. Born 1952; Chair and CEO of Somerset & Company (private investment and advisory firm) since 2004; formerly Managing Director at The Carlyle Group (2002–2004) and Senior Managing Director/Partner and Board Member at Groupe Arnault S.A. (1999–2002). He has extensive investment management experience across public/private equity, international and alternative investments. Under the Board Service Policy, he must tender his resignation by December 31, 2027, when he reaches age 75.
Past Roles
| Organization | Role | Tenure | Committees/Impact |
|---|---|---|---|
| Somerset & Company | Chairman & CEO | 2004–Present | Private equity/alternatives advisory leadership |
| The Carlyle Group | Managing Director | 2002–2004 | Private investment leadership |
| Groupe Arnault S.A. | Senior Managing Director, Partner, Board Member | 1999–2002 | Strategic investments, board governance |
External Roles
| Organization | Role | Scope |
|---|---|---|
| New York Life Investments Group of Funds (Fund Complex) | Trustee across 86 portfolios | Broad oversight across open-end/closed-end funds |
Board Governance
- Independence: Independent Trustee (the Board includes one Interested Trustee; all others independent). The Board elects an Independent Trustee as Chair.
- Tenure: Trustee since 2011 (Class III).
- Committee assignments (FY ended May 31, 2025):
- Nominating & Governance Committee – Chair (6 meetings)
- Contracts Committee – Member (6 meetings)
- Investment Committee – Member (8 meetings)
- Audit Committee – Not listed as a member (7 meetings total)
- Attendance: The Board held 9 regular meetings; each Trustee attended ≥75% of Board and applicable Committee meetings. Six Trustees attended the 2024 annual shareholder meeting.
Fixed Compensation
Director compensation framework (paid by all funds in the Fund Complex pro‑rata by net assets):
- Independent Trustees receive an annual retainer and per‑meeting fees; Board Chair receives an additional annual fee; out‑of‑pocket expenses reimbursed; no pension/retirement benefits.
FY ended May 31, 2025 compensation:
| Pay Source | Amount |
|---|---|
| Aggregate Compensation from MMD | $1,477 |
| Total Compensation from Fund Complex | $390,000 |
| Pension/Retirement Benefits | None |
| Annual Benefits Upon Retirement | None |
Performance Compensation
- Trustees do not receive performance-based pay, equity awards, or options from the Fund; compensation is cash-based retainers/meeting fees determined by the Fund Complex policies.
Other Directorships & Interlocks
- Within Fund Complex: Trustee across 86 portfolios, indicating significant cross-fund governance responsibilities.
- No related-party transactions disclosed with Mr. Trutanic; the Contracts Committee oversees fund contracts and would review external service arrangements.
Expertise & Qualifications
- Investment management and private equity/alternatives—global scope.
- Fund governance leadership: Chair, Nominating & Governance Committee (current); prior roles include Chair of Alternative & Closed-End Funds Oversight Committee and Chair of Brokerage & Expense Committee across the New York Life Investments funds.
- Deep board process experience—committee leadership and complex-wide oversight.
Equity Ownership
As of May 31, 2025:
| Holding | Range |
|---|---|
| Equity in MMD (this Fund) | None |
| Aggregate equity across the Fund Complex | Over $100,000 |
Note: For the Fund Complex, Trustee compensation and Fund share ownership are independent; Trustees may hold shares across multiple funds.
Governance Assessment
- Board effectiveness: Trutanic’s chairmanship of Nominating & Governance and membership on Investment and Contracts Committees positions him at the center of board composition/refreshment, strategy/brokerage oversight, and manager contract evaluations—key levers for closed‑end fund governance.
- Independence and oversight rigor: The Board is majority independent with an Independent Chair; committee structures and frequency of meetings (Audit 7; Investment 8; Contracts 6; Nominating & Governance 6) indicate active oversight cadence.
- Engagement: Trustees achieved ≥75% attendance; Nominating & Governance met six times under his chairmanship—supportive of high engagement in board processes.
- Alignment & incentives: Compensation is fixed-fee and fund‑complex pro‑rated; no performance equity or pension—reduces misaligned risk‑taking incentives. However, Trutanic holds no MMD shares (though >$100k across the complex), which may modestly dilute fund‑specific “skin‑in‑the‑game.”
- Potential conflicts/risks:
- External role as CEO of Somerset & Company (private investment/advisory) warrants ongoing monitoring for related‑party exposure. No related-party transactions disclosed; Contracts Committee oversight mitigates risk.
- Tenure/refresh: Long service (since 2011). The Board’s Service Policy enforces resignation at age 75; Trutanic must tender resignation by December 31, 2027, setting a clear refresh horizon.
- Red Flags: None observed in filings—no low attendance, no related‑party transactions, no option repricing, no tax gross‑ups or golden parachutes for Trustees.
Summary View (Investor Confidence Signals)
- Positives: Deep alternatives expertise; governance leadership as N&G Chair; strong committee coverage; independent board structure; robust meeting cadence and attendance; transparent, plain‑vanilla director pay.
- Watch items: No personal MMD holdings; ensure ongoing monitoring for potential conflicts from Somerset & Company; plan for orderly succession by end‑2027 under the age policy.