Viewpoints

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

Op-Ed: Whither valuation guidance?

By Douglas Scheidt

The Securities and Exchange Commission should issue valuation guidance for investment companies. When I was chief counsel in the SEC's Division of Investment Management from 1997 to 2018, I frequently advocated for the SEC to issue valuation guidance. Although the SEC has indicated a willingness to do so on several ... >> CONTINUE READING <<<

Op-Ed: Reflections and observations on mutual funds

By Andrew J. Donohue

Having been associated with the mutual fund industry for over 40 years, I have had the opportunity to witness its growth and evolution. I recently decided to look back and see whether my observations were supported by statistics. I thought I might share the results of that endeavor with you, ... >> CONTINUE READING <<<

Board oversight of non-fully transparent active ETFs

By Mark D. Perlow, Stephanie A. Capistron, and Margaret E. Wilson, Dechert LLP

Earlier this year, the Securities and Exchange Commission issued the first exemptive order permitting the operation of actively managed exchange-traded funds that do not disclose their full holdings daily. This order and other pending applications have garnered a significant amount of attention, including from active managers that previously were deterred ... >> CONTINUE READING <<<

Fund Directors: Here’s what you should know about AI

By Jilaine Bauer

In 2016, the White House published its report on the future of artificial intelligence with 23 specific recommendations for further action by federal agencies and others to help ensure AI applications are used for public good. Since then, the financial services industry and its regulators have moved quickly to broaden deployment of ... >> CONTINUE READING <<<

A director’s guide to profitability: From big picture to fund-level detail

By Sara Yerkey, Management Practice Inc.

So, the annual process of renewing funds’ contracts is underway, and the Gartenberg factors and other matters are being considered by the independent directors. Comparisons and benchmarking surrounding expenses, performance, and other components are being tackled. However, a stumbling block can appear when fund profitability is discussed. Some of this ... >> CONTINUE READING <<<

Board considerations in converting open-end funds into ETFs

By Brian McCabe and Teo Larsson-Sax, Ropes & Gray LLP

The Securities and Exchange Commission recently granted exemptive relief to Precidian ETFs Trust that permits an actively managed exchange-traded fund to operate without being subject to the daily portfolio transparency condition included in past active ETF orders. We anticipate that this structure may be attractive to many active managers that ... >> CONTINUE READING <<<