Viewpoints

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

A decade since Jones v. Harris: Where fund boards stand

By Kelley Howes, Morrison & Foerster LLP

Section 36(b) of the Investment Company Act imposes a fiduciary duty on advisers with respect to receipt of compensation for services they provide to registered investment companies. The only U.S. Supreme Court decision to consider section 36(b), Jones v. Harris Associates L.P., was handed down on March 30, 2010—a full ... >> CONTINUE READING <<<

Directors: Put fulcrum fee funds on your radar now

By Bob Kennedy, FUSE Research Network

Top-level industry data suggests that the active strategies overseen by mutual fund boards are facing an uncertain future as passive products continue to attract a disproportionate share of flows and ongoing fee pressure chips away at their margins. As a result, responding to fee pressure continues to occupy an ever-growing ... >> CONTINUE READING <<<

Guide to derivatives rule 2.0 (and how we got here)

By Nathaniel Segal, Vedder Price P.C.

In late November 2019, the Securities and Exchange Commission checked another item off its ambitious rulemaking agenda with a rule proposal involving one of the more complex but increasingly relevant areas of fund regulation: the use of derivatives instruments by registered funds. Proposed rule 18f-4 under the Investment Company Act ... >> CONTINUE READING <<<

Fund proxy voting: What’s the board’s role?

By Sara P. Crovitz, Stradley Ronon

In the last few years, the financial press has increasingly focused on how institutional investors, particularly mutual funds, impact the public companies in which they invest.[1] Whether controversial director elections, shareholder proposals related to ESG themes, or the threat of common ownership in particular industries, articles point to the power ... >> CONTINUE READING <<<

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 <<<