Viewpoints

Articles written by industry professionals for Fund Board Views, may be opinion, commentary, educational/instructional.

Op-Ed: Reflections on changes to fund board characteristics

By Carl Frischling, Perkins Coie LLP

We are often told in many areas of our life that "one size doesn't fit all," and I believe that in my years of experience in the industry, this adage is applicable to fund boards—except that I contend a better analogy is "boards are like fingerprints," in that no two ... >> CONTINUE READING <<<

Will asset management evolution create new fee litigation risks?

By Ethan Corey, Practus, LLP

When the U.S. Supreme Court issued its Jones v. Harris Associates L.P. decision in March 2010, the justices articulated what a mutual fund shareholder must prove in order to demonstrate that the fund's investment adviser breached the "fiduciary duty with respect to the receipt of compensation for services" as imposed ... >> CONTINUE READING <<<

Market update: A look at the move to model portfolios

By Robert Kennedy, FUSE Research Network

One of the most prominent developments stemming from wealth managers’ efforts to exert more control over portfolio construction is the move to model portfolios, where individual investments are selected and the asset-allocation methodology is applied in a way that meets the investment needs of investors with similar goals, risk tolerances, ... >> CONTINUE READING <<<

Op-Ed: Does a mutual fund board need a staff?

By C. Meyrick Payne and Frank Tarantino

Does a mutual fund board need a staff? The complexity of fund board issues is increasing due to regulation, competition, product offerings, technology, and pricing alternatives. Furthermore, the trend toward large mergers of ever-more-complicated fund groups adds to the responsibilities and difficulties faced by fund boards. All of this calls ... >> CONTINUE READING <<<

Rule 2a-5 draft: Thoughts on the evolution of fair value, from a fellow gatekeeper

By John Braun, BBD, LLP

In April, the Securities and Exchange Commission released proposed Rule 2a-5 under the Investment Company Act of 1940, which addresses valuation practices and the relative role of the board of directors for registered investment companies and business development companies. The comment period for this proposed rule ran through July 21, ... >> CONTINUE READING <<<

CEF securities offering reforms, no-action relief create board challenges

By Ethan Corey, Practus, LLP

On April 8, the Securities and Exchange Commission adopted rule and form amendments to modify the registration, communications, and offering processes for business development companies and other closed-end funds under the Securities Act of 1933.[1] Among other things, the amendments are expected to facilitate CEFs’ ability to offer their shares ... >> CONTINUE READING <<<