Viewpoints

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

Adviser converting fund to ETF? Here are some tips for boards

By Susan J. Templeton

More than 90% of financial advisors who participated in a recent Financial Planning Association survey said they use or recommend exchange-traded funds, and of those, half said they plan to increase their usage in the next 12 months. The findings of The 2023 Trends in Investing Survey demonstrate that the ... >> CONTINUE READING <<<

Money funds back in vogue; what’s a fund director to do?

By Darrell N. Braman

It’s been years since money market funds have received this much attention from investors. Money fund assets have grown this year by over $550 billion, to a record $5.4 trillion in total assets as of the end of May.[1] Investors moved substantial amounts of cash into money funds seeking the ... >> CONTINUE READING <<<

Fund Boards: Be ready to combat cyber risks

By Nicole Crum, Sullivan & Worcester, and Keisha McClellan, Weber Shandwick

Mutual fund boards have increasingly struggled to define their oversight obligations with respect to cybersecurity in light of the Securities and Exchange Commission’s proposed cybersecurity rulemaking, which would expand the board’s role and required oversight obligations significantly. There has been much hand wringing over the fact that the proposed rule ... >> CONTINUE READING <<<

Oversight of fees, economies of scale in a world of declining AUM

By Sara Yerkey, Management Practice Inc.

As one of the Gartenberg tenants, mutual fund directors are charged with assessing how the adviser shares economies of scale with fund investors. In recent years, a long run of market performance likely boosted firms’ and funds’ assets under management (depending, of course, on the strategies in which the funds ... >> CONTINUE READING <<<

How 'people science' can lead to sought-after board chemistry

By John F. Broer, Real Good Ventures

Board dynamics are certainly unique. The roles and relationships that develop on a board are very different from relationships on a corporate executive team or a project team. The objectives and directives usually differ, and the longevity of board roles can extend well past the typical tenure of a corporate ... >> CONTINUE READING <<<

Considerations for mutual fund boards overseeing sub-adviser transitions

By David F. Roeber, Stradley Ronon Stevens & Young, LLP

Mutual fund boards have a myriad of duties and oversight responsibilities arising under state and federal law, notably the Investment Company Act of 1940. Certain funds utilize investment advisers that delegate some or all of the portfolio management functions and related services to one or more sub-advisers. For such sub-advised ... >> CONTINUE READING <<<