Top of the Agenda - Governance

Legg Mason plans merger of equity funds' boards

By Hillary Jackson

Legg Mason plans to merge two of the boards overseeing its open-end equity funds later this year, reducing director headcount and further consolidating fund governance at the Baltimore complex. The proposed merger, on which shareholders will vote in mid-June, follows the combination of two boards overseeing affiliate Western Asset Management ... >> CONTINUE READING <<<

Fund governance pros say now is time for diversity & inclusion

By Hillary Jackson

Independent mutual fund directors are more highly qualified now than at any point in history, and on many fund boards, there is a good variety of backgrounds among the professionals who serve. When it comes to gender and racial diversity, however, boards need improvement, as the vast majority of directors ... >> CONTINUE READING <<<

Putnam ETFs to have dedicated board

By Hillary Jackson

Putnam Investments has tapped four of the independent directors who oversee its 97 open-end mutual funds to form a separate board dedicated to oversight of the exchange-traded funds it is planning. The new board also will include one interested director.

The Boston mutual fund giant announced last week that it would ... >> CONTINUE READING <<<

Reddit GameStop frenzy should spur board talks with adviser, PMs

By Hillary Jackson

Lawyers who work with mutual fund boards are recommending directors—especially those overseeing equity funds—initiate conversations about the GameStop frenzy that has enveloped the financial markets this week. Even if their funds are not holding shares of the gaming company, portfolio managers and the adviser should be able to discuss how ... >> CONTINUE READING <<<

Boards to grapple with rule 2a-5, other reg matters, in 2021

By Hillary Jackson

Regulatory matters are expected to take up a sizable chunk of time on mutual fund boards' 2021 agendas. The new rule on fair valuation practices is the latest item to be added to a list that already includes—for many boards, and to varying degrees—new rules on the use of derivatives ... >> CONTINUE READING <<<

Q&A: Artificial intelligence in the fund industry

A conversation with Sidley Austin's Nathan Greene, BlackRock's Dr. Rachel Schutt, and FundGuard's Lior Yogev: What is artificial intelligence, and how much do mutual fund industry professionals need to pay attention to it?

According to Schutt, AI is simply defined as the use of machines to replicate human intelligence. It ... >> CONTINUE READING <<<