IDC Update: May 27, 2021
One Week from Today: IDC Virtual Workshop for Fund Directors
Don’t miss out on IDC’s annual Fund Directors Workshop, to be held virtually on Thursday, June 3. The workshop will feature an all-star lineup of speakers, including Securities and Exchange Commission (SEC) Commissioner Hester Peirce.
In addition, Tom Faust (Morgan Stanley Investment Management), Catherine Newell (Dimensional Fund Advisors), and Jane Carten (Saturna Capital) will join Bob Chersi (independent director, Thrivent Funds) for a discussion on the dynamic business environment in the asset management industry. Then, Ron O’Hanley (State Street) and Greg Ratliff (independent director, Domini Funds) will discuss environmental, social, and governance (ESG) developments with Gale Caruso (independent director, Pacific Life Funds and Matthews Asia Funds). CPE credit is available.
Register now for IDC’s Fund Directors Workshop!
Latest IDC Speakers Series Event: The State of the Global Markets with Abby Joseph Cohen
On May 19, IDC presented the latest event in its popular Speakers Series, “A Conversation About the State of the Global Markets,” with Abby Joseph Cohen, advisory director and senior investment strategist for Goldman Sachs. Cohen discussed the state of the global markets during the world’s ongoing struggles with the challenges presented by the COVID-19 pandemic. Feedback from those who participated included the following comments: “Abby is the very best. Her talk was well delivered and extremely substantive,” and “Abby Joseph Cohen is a legend.” If you were not able to participate in the Speakers Series, we encourage you to view the recording, which can be accessed here (login required).
Stay tuned for future Speakers Series events!
IDC Presents Webinar on Digital Assets
On June 22, IDC will host “Digital Assets: What Fund Directors Need to Know from a Regulatory and Operational Perspective.” The webinar will review regulatory compliance and operational considerations associated with investment management activity in cryptocurrency and other digital assets, including portfolio management and disclosure. Panelists will help fund directors get a sense of what they should know in their oversight role. Register for the webinar.
President Biden Issues Executive Order Directing DOL to Reevaluate ESG Rule
On May 20, President Joe Biden issued an “Executive Order on Climate-Related Financial Risk.” The accompanying White House Fact Sheet explains that, among other things, the executive order directs the Secretary of Labor to “consider suspending, revising, or rescinding any rules from the prior administration that would have barred investment firms from considering environmental, social, and governance (ESG) factors in their investment decisions related to workers’ pensions,” including the ESG rule that was finalized under the Trump administration, “Financial Factors in Selecting Plan Investments.” The executive order also instructs the Department of Labor (DOL) to review a Trump-era regulation governing pension plans’ proxy voting. The DOL in March 2021 had announced that it would not enforce either rule.
CFA Institute Developing ESG Disclosure Standards for Investment Products
CFA Institute is developing voluntary, global industry standards to establish disclosure requirements for investment products with ESG-related features. On May 19, 2021, CFA Institute issued an exposure draft, “CFA Institute ESG Disclosure Standards for Investment Products,” incorporating comments received on its August 2020 “Consultation Paper on the Development of the CFA Institute ESG Disclosure Standards for Investment Products.” The exposure draft explains that the standards are intended to “provide greater transparency and consistency in ESG-related disclosures, resulting in clearer communication regarding the ESG-related features of investment products.” The exposure draft also states that CFA Institute’s standards, which focus on disclosure of investment product strategies, do not overlap or conflict with most other regulations and voluntary codes and standards. The final version of CFA Institute’s standards is expected to be issued in November 2021. ICI’s memorandum summarizing the exposure draft may be accessed here (login required).
ICI Releases Findings on 2020 Closed-End Fund Market
ICI recently issued the results of its research on “The Closed-End Fund Market, 2020.” The research indicates that, despite the economic downturn in February and March 2020, total closed-end fund assets at year-end 2020 ($279 billion) were the same as year-end 2019. However, overall investor demand for closed-end fund shares decreased in 2020, as net issuance of closed-end fund shares fell from $5.9 billion in 2019 to $1.5 billion in 2020. In addition, price deviations from net asset values on both equity and bond closed-end funds widened substantially in 2020. The full report is available here.
Mark Your Calendar for Upcoming Events
All times are shown in eastern time (ET).
Conferences
Webinar
Foundations for Fund Directors®
- June 24–25 (Virtual)
- September 13–14
Industry Segment Calls
- Directors of ETFs: June 8, 3:00 p.m.
- Board Leaders: June 9, 2:00 p.m.
- Audit Committee Chairs: June 14, 2:00 p.m.
- Directors of Small Funds: June 29, 1:00 p.m.
- Governance Committee Chairs: June 30, 2:00 p.m.
Please contact Paul Mussoni for additional information. A list of IDC events can be found on IDC’s website.
For more information about IDC, please contact idc@ici.org. If you are experiencing technical problems, please contact the webmaster@ici.org. To opt out of receiving IDC Update, please contact ICI Member Services.