From the Editor...

With less than two months left in the year, many mutual fund boards and those who work with boards are now turning their attention to 2025. The "good news," as once industry lawyer characterized it in a recent interview, is that the majority of the SEC's many rules and rule amendments of the past several years are already implemented or well into the process of implementation. That means next year will be less about coming into compliance than recent years have been. That said, the fund industry still has plenty on which to focus in the regulatory realm. We spoke to Sara Crovitz and Stuart Coleman at Stradley Ronon about the SEC's 2025 Examinations Priorities to get a sense of the takeaways for fund independent directors, since boards are not directly addressed in the regulator's new document. They agreed that the list of priorities, which the SEC publishes annually, is a great roadmap for boards to use when devising their own priorities for the coming year. 

The SEC's recent settlement with WisdomTree Asset Management—charged with failing to follow its own investment criteria for three actively management ESG-marketed exchange-traded funds—also provides lessons and guidance for boards, governance experts told FBV. The board overseeing WisdomTree's ETFs was not found to be at fault, and the adviser neither admitted nor denied the SEC's findings, but there often are reminders and potential lessons in a case like this for the board. "It's always about the ask," MPI's Sara Yerkey told us.

In the courts, Eaton Vance closed-end funds claimed victory after a Massachusetts Superior Court judge in late October rejected Saba Capital Management's challenge to a by-law amendment related to trustee elections adopted by the funds that Saba said violated the Investment Company Act of 1940. The court held that the majority rule amendment "puts no burden on any of Saba's shareholder voting rights." Saba has used the courts and other methods over the past several years to target closed-end funds and their boards, accusing them of violating the '40 Act in their efforts to fend off activists, and a Saba official told FBV the activist "is committed to continuing to fight for good governance and fair elections."

Finally, we've reported recently on developments in the boardrooms of DWS Funds, where several industry veterans are retiring, and RBC Funds, which continues to deal with the challenges of generational shift. We try to make sure FBV readers don't miss a thing!

One last message: Don't forget to VOTE! 

For now,

Hillary Jackson, founding editor