Viewpoints

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

Op-Ed: The unintended consequences of swing pricing

By Susan J. Templeton

The Securities and Exchange Commission recently proposed rules around swing pricing amendments for mutual funds. In short, swing pricing is an investor anti-dilution tool. The SEC’s justification for considering this rule is that existing shareholders in a fund can be adversely affected by the cash flows associated with net purchases ... >> CONTINUE READING <<<

The role of independent fund directors: 60 years ago and today

By Jay G. Baris and Nathan J. Greene, Sidley Austin LLP

Congress enacted the Investment Company Act of 1940 to address perceived abuses in the mutual fund industry, primarily resulting from overreaching by investment advisers and sponsors to the detriment of fund shareholders. At the time, the fund industry was tiny by today’s standards: In 1941, there were some 141 registered ... >> CONTINUE READING <<<

A look at 20 years of fair valuation practices data

By Paul Kraft, Deloitte

What started out as a vision to help key mutual fund stakeholders understand how evolutions in the capital markets, in governance practices, and in the regulators’ activities and expectations were affecting fund groups’ valuation operating models has now developed into a rich source of information highlighting emerging, maturing, and stabilized ... >> CONTINUE READING <<<

More than milk: ESG investing given SEC’s rulemaking, enforcement agenda

By Amy Roy, Robert Skinner, and Brooke Cohen, Ropes & Gray

The massive flow of assets into ESG-focused funds reflects the intense and growing demand for investment products that enable investors to put their values into action while pursuing strong financial returns. The dramatic growth of the ESG funds sector has predictably attracted the attention of regulators, commentators, and the private ... >> CONTINUE READING <<<

New derivatives rule: A fund board’s responsibilities

By David Grim, Christopher Zimmerman, Jana Cresswell, and Zack Bradley, Stradley Ronon Stevens & Young

In late 2020, the Securities Exchange adopted new rule 18f-4 under the Investment Company Act of 1940, which provides for an updated and comprehensive regulatory approach to the use of derivatives and certain other transactions by registered investment companies.[i] More so than the prior regulatory approach, the new derivatives rule ... >> CONTINUE READING <<<

ESG rating providers: Discrepancies and the fund board’s oversight role

By Ethan Corey, Eversheds Sutherland

Environmental, social and governance investing remains highly popular with the investing public. According to Morningstar research, sustainable mutual funds and exchange-traded funds attracted $69.2 billion in net inflows from investors last year.[1] At the same time, ESG investing has drawn the scrutiny of regulators on both sides of the Atlantic. ... >> CONTINUE READING <<<