From the Editor...

August 21, 2017

By Hillary Jackson

From the Editor...

 

Oops! We sent the wrong Editor's Note. Please see below, and excuse the extra email in your inbox. —HJ

 

Whenever there's a merger of mutual fund companies, one thing that needs to be worked out—among many—is what to do with the fund boards. In the case of Virtus Investment Partners' recent acquisition of RidgeWorth Investments, the end result is a larger board that includes mostly Virtus Funds directors and two RidgeWorth Funds directors, including the former independent chairman of RidgeWorth Funds. The new board will meet for the first time next month, though the integration process is already underway. 

 

Also happening this fall in boardrooms around the country: reports on advisers' progress on compliance with the Securities and Exchange Commission's liquidity risk management rule. The market is just over a year out from the compliance date, and fund boards need to be up to speed on what's happening. The issue is among the 10 Things on which boards currently are focused, and one market player offers guidance on Rule 22e-4 to both advisers and fund directors

 

Speaking of guidance, our latest Viewpointscontributed by Willkie Farr's Rose DiMartino—discusses conflicts of interest and what boards should be on the lookout for and how to address conflicts when they arise. It's a good, thorough piece that's worth reading and bookmarking for future reference. 

 

In the courts, we report on the first sub-adviser fee comparison case to be dismissed. Kennis Trust v. First Eagle Investment Management LLC is the first such case in the current wave of Section 36(b) cases to come to an end, and we've got our eye on the many others making their way through the court system.

 

Here at FBV, today marks the start of our annual two-week August shutdown. We're reachable by email should you need us, but we will not be posting content again until after Labor Day. Enjoy the rest of your summer—including today's eclipse (but be safe!). We'll be back in September ready to focus on what needs to get done by year-end.

 

For now,

 

Hillary Jackson, founding editor 

 

 

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