Some fund boards are looking into dedicated limits for independent directors' insurance coverage or raising their limits, according to Wendy Dowd, v.p. and underwriting manager at Chubb Specialty Insurance.
Boards may reevaluate their self-assessment approaches, nominating committee charters and/or governance policies to make sure they meet the Securities and Exchange Commission's new disclosure rules on qualifications for board members, the board's oversight of risk management and leadership structure of the board.
In 2010, board agendas are finally returning to a state of normalcy, with most focusing on the long term.
Boards have been placing more emphasis on distribution, including understanding the different distribution channels and the roles that intermediaries play.
After its annual self assessment, the board of the Forum Funds has decided to go from six meetings to four.
The board of the JNL Series Trust has increased the annual retainer received by each independent trustee by $10,000.
The board of the Rainier Funds has been focusing more on performance, including receiving more frequent updates and additional reports from portfolio managers, according to Gary Sundem, independent director.
In light of the Securities and Exchange Commission's expanded disclosure requirements on boards' oversight of risk management, some are revisiting their role, according to John O'Hanlon, partner at Dechert.
Investors in open-end mutual funds have no reason to vote, lobby boards or sue their fund managers for excessive fees, according to John Morley, John R. Raben/Sullivan & Cromwell executive director of the Yale Law School Center for the Study of Corporate Law.
This month, the boards of the Aquila Group of Funds along with the chief compliance officer are slated to review the risk matrix, according to Ted Mason, chairman of several of the boards.
After two successful meetings in Germany last year, the board of the DWS Investments funds has decided to continue the meeting strategy for 2010.
Several Neuberger Berman closed-end fund boards have decided not to use Fitch Ratings' new ratings criteria on the funds' auction market preferred shares, citing significant changes to the discount factors and flexibility of the funds' offerings.
A group of economists who have served as consultants in a number of excessive fees cases, including a recent case brought against American Funds advisor Capital Research and Management Company, have put pen to paper in a new book: "The Mutual Fund Industry: Competition and Investor Welfare."
The board of the Sentinel Funds will be paid a flat fee next year rather than a combination of a retainer and a per meeting fee.
As a result of shares constantly trading at a discount, the board of closed-end fund Adams Express Company has been discussing alternative structures – one of which includes converting to an open-end fund or, more uniquely, an actively managed exchange-traded fund, although a conversion is not imminent, according to Doug Ober, interested chairman.
Boards that share insurance with the fund and the advisor are digging deeper into premium allocation issues, according to Claude Tusk, partner at Dechert.
At a recent meeting the board of the Hartford Funds spent some extra time reviewing its risk procedures.
The board of the HSBC Investor Funds is aiming to keep better tabs on performance by adding it to the existing valuation committee duties, according to Larry Robbins, independent trustee.
The OppenheimerFunds board II is paying more attention to performance, according to Sam Freedman, independent director.
Due to the asset decline of the past 18 months and other changes, such as oversight of more complex offerings, boards are becoming more interested in throwing additional variables into the mix when it comes to setting director pay.
Citing ongoing litigation and other fund expenses, the board of trustees of the Reserve Yield Plus Fund has halted distributions to shareholders.
American Funds is consolidating the number of boards that oversees the 30 funds in its complex from ten to seven and is increasing the median board size from about 10 to a dozen directors.
In recent meetings, the board of the Ariel Funds has been placing more emphasis on what it might have done differently given the dramatic circumstances of the markets over the last 18 months.
Directors have oversight responsibilities over too many funds, according to Russell Page, independent director of the Diamond Hill Financial Trends Fund.
Larger fund boards are turning to professional search firms to cast a wider net for independent directors.
Before adding a new fund to its Asia-centric lineup last month, the board of the Matthews International Funds was focusing on the management company's marketing of the fund.
Spurred by the market correction and the downward trend in fund performance, boards have begun to conduct performance attribution analyses on the funds they oversee, according to Jeff Keil, principal of Keil Fiduciary Strategies.
When looking at the performance of a new fund manager, directors need to get to know its investment style and philosophy as well as consider new ways to look at performance in the short-term, according to Jamie Baxter, vice-chairman of the board of Putnam Funds.
After four or five years without any new blood, the board of the Sit Mutual Funds may bring on an additional member over the next year.
Oral arguments before the Supreme Court in the case of Jones v. Harris Associates took place Nov. 2.
Boards should be concerned about up to $9.6 billion per year in unnecessary costs that shareholders are unaware of paying, says Niels Holch, executive director of the Coalition of Mutual Fund Investors.
The board of the Atlantic Whitehall Funds held its final board meeting in October, as it reorganized its remaining funds into the Invesco Aim family of funds.
Boards are becoming more involved in the merger and acquisition process, according to Barry Barbash, partner at Willkie Farr & Gallagher.
Boards are engaging in more focused conversations with fund management about the role of the chief risk officer, according to Paulita Pike, partner at K&L Gates.
Cecilia Gondor, executive v.p. of Thomas J. Herzfeld Advisors, told FD that the past 18 months have taught closed-end funds to be prepared for unintended consequences.
The board of the Janus Funds recently approved a change in the distribution from no-load funds to advisor-based funds.
The board of the Morgan Stanley funds has started to delve deeper into risk management.
Boards are becoming increasingly interested in the servicing capabilities of transfer agents, according to Jean Stearns, senior v.p. at Boston Financial Data Services.
The board of RiverSource funds has implemented a new meeting strategy in which the chief compliance officer, Ameriprise's risk management officer and its internal auditor all presented.
The number of directors using separate counsel has remained constant after having increased steadily in previous years, according to a bi-annual study by the Independent Directors Council.
An overwhelming 91% of subscribers surveyed by Fund Directions said having fund management set directors' compensation is a conflict of interest or gives off the appearance of one.
The board of the Advisors Series Trust is exploring ways to go digital with fund and meeting information.
Boards have shifted their focus to new investment techniques and are playing down last year's worries surrounding fund viability.
As directors' responsibilities become more of a focal point, boards are examining their compliance and risk management programs more closely, according to Shannon Behara, senior principal consultant at ACA Compliance Group.
It was business as usual for the board of DWS Investments funds when it reviewed management's controversial proposal for a new money market fund with a floating share price.
In anticipation of the Supreme Court's decision in Jones v. Harris Associates, boards may be more interested in using fee consultants, according to at least one fund lawyer.
Boards should be aware of the tax implications surrounding the increasing number of fund mergers and reorganizations, according to Susan Johnston, partner at Ropes & Gray.
The number of directors pulling double duty has decreased in recent years.
For the third time, the board of Putnam Funds has voted to renew its repurchase program for Putnam's five closed-end funds.
More fund boards will likely set up a risk management committee, Marguerite Bateman, partner in the law firm of Sutherland Asbill & Brennan, said during a panel discussion at the Investment Company Institute's Tax & Accounting conference last month.
The board of the Sentinel Funds is expanding its involvement in risk management by bringing the advisor's compliance officer in to give a rundown of its risk management process.
The board of the Unified Series Trust is monitoring the transition to summary prospectuses for some of its funds.
The Zweig Total Return Fund may soon be converted from a closed-end fund to an open-end fund.
The board of Northern Lights Fund Trust has been reviewing its committees to determine whether more are needed.
Boards are starting to look at the challenges of managing money market funds and some are evaluating whether to exit the business.
The Kansas City board of the American Century funds will focus on succession planning, fund development and the construction of benchmarks and peer groups at a retreat with the fund's advisor this month.
The board of Coventry Funds Trust is exploring different ways to make the summary prospectus and other fund disclosures more useful to investors.
As investments become more complex and funds look to evaluate the risk involved, there has been an increased demand for directors with investment management related experience as well as those with risk management backgrounds.
Directors should seek to understand what capabilities the advisor has internationally and how it interacts with the offices in the United States.
The board of the Hartford Funds has kept busy this year evaluating fund performance and then deciding whether a fund is still large enough to stand on its own.