Management is constantly preparing for board meetings at both the corporate and investment product level.
Fund Directions spoke with Ed Blount, chair of the Washington, D.C.-based Center for the Study of Financial Market Evolution, about what boards should consider when dealing with lending securities.
The current regulatory and economic environment is resulting in additional rules, focused attention on fund performance, and longer, intensified board meetings.
Earlier this year, the Securities and Exchange Commission amended the prospectus disclosure requirements applicable to mutual funds and adopted a new summary prospectus delivery option for mutual funds.
The recent market downturn has led to increased fund merger activity as advisers seek to streamline their product lines by merging away small and poorly performing funds.
The board of directors of an exchange-traded fund, like that of a mutual fund, each year evaluates for approval the ETF's investment advisory contract and resultingly, the performance of its investment adviser.
Recent regulatory reform initiatives to address perceived market problems may place additional responsibilities on boards of directors of mutual funds and closed-end funds.
Rule 17j-1 under the 1940 Act addresses conflicts of interest that arise from personal securities transactions of investment company personnel, including directors and officers.
Valuation has always been a hot topic for boards and the current credit crisis has only heightened its importance.
In this environment, with assets down and expenses up, its not surprising that fund boards are looking for ways to reduce the expense burden on their funds and ultimately on their shareholders.
Mutual fund directors often rely on advice of counsel when they oversee complicated issues affecting shareholders, such as advisory fees, valuation of portfolio securities, soft dollars and compliance.
With all the noise about stability in the financial services field, fund boards and management companies would do well to inquire into the financial stability of their service providers.
Money market funds have recently been battling negative yields and breaking the buck as they adopted more defensive investment strategies with higher credit quality and correspondingly lower credit risk.
The worsening global financial crisis is causing increased stress in the mutual fund management business.
The current market environment is unknown territory for nearly everyone in the financial system.
Many academics and researchers suggest investors include foreign equities in their portfolios to increase diversification.
Mutual funds are highly regulated.
Demands on mutual fund boards over the past five years have made it more imperative than ever that new directors quickly become knowledgeable, competent board members.
The U.S. Court of Appeals for the Seventh Circuit recently handed down a decision rejecting the "Gartenberg" standards for reasonableness that fund boards have used for decades in evaluating and approving investment advisory contracts.
The importance of valuation has increased dramatically with the credit crunch fallout affecting virtually every aspect of the U.S. capital markets and overall economy.
Insurance coverage is an important safety net for independent directors and some are beginning to wonder whether recent credit market weaknesses might leave them vulnerable.
Fund Directions spoke with David Mahle, partner at Jones Day in New York, on what directors should know about investing in special purpose vehicles.
Fund Directions spoke with Kristin Ives, partner at Stradley Ronon in Philadelphia, about what boards should consider when faced with liquidity problems.
Last month, Fund Directions spoke with Cliff Alexander, partner at K&L Gates about what directors should know when it comes to the complex world of derivatives.