Viewpoints

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

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 <<<

Op-Ed: Nix boards’ third-party sub-adviser 15(c) duties

By Robert E. Plaze, Proskauer Rose LLP

As the mutual fund industry has evolved, fund boards have been given additional duties. If the Securities and Exchange Commission is looking for ways to reduce those duties without compromising important investor protections, it could consider eliminating fund boards’ Section 15(c) responsibilities over unaffiliated sub-adviser relationships.

How We Got Here
The ... >> CONTINUE READING <<<

Practical insights on fund mergers for independent directors

By Joanne A. Skerrett, Mutual Fund Directors Forum

The upward trend in industry consolidation is expected to continue into 2019 with increasing mergers of funds and investment adviser acquisitions. Investment advisers or their parent companies combine, reorganize and restructure to grow and streamline their businesses or gain access to new markets, technology or expertise. Fund mergers have been ... >> CONTINUE READING <<<

Government shutdown hits funds, fund boards

By Jay G. Baris, Shearman & Sterling

Many news reports have recounted how the partial government shutdown has affected government employees, shuttered national parks, and unsettled the stock market. But few, if any, have given much thought to how the shutdown affects the oversight responsibilities of mutual fund directors.

Yes, the impact of government shutdown has trickled down ... >> CONTINUE READING <<<

Fund boards and culture risk: Tackling sexual harassment, discrimination

By Nicole M. Crum, Sullivan & Worcester

As part of their larger risk oversight role, mutual fund boards are increasingly considering their role in evaluating “culture risk” and how it relates to sexual harassment and discrimination at mutual fund service providers, particularly with respect to investment advisers and sub-advisers. Culture relates to the “system of values, beliefs ... >> CONTINUE READING <<<