Fair Valuing of Portfolio Securities: Responsibilities of Fund Managers and Directors

The valuation of portfolio securities is the cornerstone of the investment management industry. Securities valuations represent a significant day to day responsibility for fund management and directors. However, market timing scandals, increasingly interlinked capital markets and a broadening of securities held in mutual funds have brought to light new thinking and new rules about the fair valuing of portfolio securities. I worked closely with professionals in Deloitte’s financial services and investment management practice to help author this white paper which discusses why fund managers and trustees must now operate within a broader context and apply fair value procedures in a fund’s daily operations rather than as a contingency procedure applied when the fund’s board and or management believes pricing or other valuation irregularities might be present.

Trust Preferred Securities Enhance Investor, Issuer Opportunities

Changes in 1996 by the Federal Reserve Bank regarding the definition of so-called Tier 1 capital for banks unlocked new opportunities for depositories as well as investors. While the former tapped a non dilutive source of growth capital, the latter earned a yield premium, and the ability to diversify their financial services risk profile into community and local banks. This material was published first by Merrill Lynch, which was granted first rights to publication in a book about structured finance products, and was later included as a chapter in a book by investment banker Cohen Brothers & Company called Perspectives on Banking.

The SEC’s New Compliance Program Rules: Implications and Considerations

Reaction to the wave of late trading and market timing scandals came in the form of the SEC’s compliance program for investment managers and advisors. This white paper which I helped author for Deloitte was written for compliance officers, c-level executives and board members of fund companies and provided them with a broad overview of the issues and implications issuing from this new regulatory initiative.

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