The Securities and Exchange Commission’s staff is considering recommending a regulatory fix to the auditor independence issues caused by the Loan Rule, according to the SEC‘s semiannual regulatory agenda, which was made publicly available Thursday. The “Loan Rule,” actually a provision of Rule 2-01 of Regulation S-X, provides that an […]
Mutual Funds – ETFs
Fundlaw
Penta Fund to Deny Redemption Requests
Losses cause liquidity concerns By John M. Baker, Esq. Penta Japan Fund Ltd. told investors that it temporarily won’t be able to honor some $120 million in outstanding redemption requests. According to a detailed article on HedgeWorld.com, the fund has lost 47.4% of its value this year after gaining 153.8% […]
Do Mutual Fund Managers Add Value?
New Study Says Maybe Not By John M. Baker, Esq. A longstanding controversy is whether professional investment managers are able to add value. Some older studies have suggested that, at least for mutual fund investors, actively managed funds consistently underperform index funds. Now a study in the August 2000 issue […]
SEC Allows Multimanager Exemptions Again
Order Permits Exemptive Order for Manager of Managers By John M. Baker, Esq. July 6, 2001 – The Securities and Exchange Commission today published in the Federal Register an order granting a manager of managers exemptive order and denying a request for a hearing. Release No. IC-25055, 66 Fed. […]
Market Timing Is Legal
Lying to Investors Is Not. By Mark J. Astarita, Esq. While you would never know it from the press reports, and some pretty irresponsible statements from some regulators, market timing is not illegal. It is a perfectly legal trading strategy, which has been in existence for years, with the knowledge […]
SEC Position on Mutual Fund Fair Value Released
New Obligations for Mutual Fund Directors? By John M. Baker, Esq. The staff of the Securities and Exchange Commission recently issued an interpretive letter on the obligation of investment companies and their directors to determine in good faith the fair value of the funds’ portfolio securities when market quotations are […]
GAO Report on Mutual Fund Fees Released
Makes Recommendations for Improved Disclosure By John M. Baker, Esq. The General Accounting Office released its long-awaited, and long (132 PDF pages), report on mutual fund fees. GAO, Mutual Fund Fees: Additional Disclosure Could Encourage Price Competition, No. GAO/GGD-00-126 (June 2000). The report notes that most investors have focused on […]
