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Asset Management ADVocate

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Perkins Coie Shepherds the First Registered Investment Company Structured as a Maryland Benefit Corporation

The U.S. Securities and Exchange Commission granted effectiveness to the registration statement of a client of Perkins Coie, which is the first known registered investment company structured as a Maryland Benefit Corporation.

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Derivatives Exposure under Rule 18f-4: Notional Apples and Oranges

Having provided two "big pictures" of the calculation of a fund's "derivatives exposure," we resume with an in-depth examination. We begin by considering how to determine the "gross notional amount" of a derivatives transaction.

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The SEC’s ESG Risk Alert and the CFTC’s New Climate Risk Unit

On April 9, 2021, the SEC's Division of Examinations (the "Division") published its first risk alert detailing deficient and effective practices among investment advisers and registered and private funds ("Firms") offering ESG strategies.

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The Derivatives Exposure Equation

Our last post provided a big picture summary of the steps required to calculate a Fund's "derivatives exposure" for purposes of new Rule

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Derivatives Exposure: Why It Matters And How To Calculate It

Our last post outlined the essential differences between VaR Funds and Limited Derivatives Users: primarily that the former must adopt a derivatives risk management program (a "DRM Program") while the latter need only have policies and procedur

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VaR Funds vs. Limited Derivatives Users—Programs vs. Procedures

Our last post explained the two basic alternatives for managing derivatives risks under new Ru

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What Kind of Derivatives User Is Your Fund?

Rule 18f-4 is somewhat unusual in that it gives management investment companies (including business development companies but excluding money market funds, "Funds") alternative means of complying with its exemption from Section

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The SEC Is All in on ESG, Including (Potentially) D&I Issues

Acting SEC Chair Allison Herren Lee continues to aggressively promote the SEC's ESG agenda by launching a dedicated ESG webpage on the SEC's website and speaking in support of ESG initiatives.

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What Risks May Be Associated with Derivatives Transactions

Having completed our review of derivatives transactions, we now consider the risks such transactions may pose.

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Rule 18f-4 Derivatives Transactions Recap

This post completes our exploration of the definition of "derivatives transactions" in Rule 18f-4, which is relevant to business development companies, closed-end funds and open-end funds other than a money market fund ("Funds").

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Transactions that Are “Derivatives Transactions” under Rule 18f-4

In this post, we continue our exploration of the definition of "derivatives transaction" in new Rule 18f-4, which is relevant to business development companies, closed-end funds and open-end funds other than a money market fund ("Funds").

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Details on the SEC’s ESG Priorities, an Invitation to Comment, and Words of Caution

The pace of statements on ESG issues from SEC Commissioners on both sides of the political aisle shows no signs of abating.

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Derivatives that Are Not “Derivatives Transactions” under Rule 18f-4

In this, the twelfth installment of our review of the compliance requirements of new Rule 18f‑4, we leave the peripheral transactions addressed in the rule (i.e., delayed-delivery transactions,

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The DOL and the EU on ESG

The Securities and Exchange Commission ("SEC") isn't the only regulator actively facilitating environmental, social and governance ("ESG") investment strategies. Last week saw major developments at the U.S. Department of Labor ("DOL") and the European Union ("EU").

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Compliance Checklist for Unfunded Commitment Agreements

This eleventh installment of our review of the compliance requirements of new Rule 18f‑4 as it applies to business development companies, closed-end funds and open-end funds other than money market funds ("Funds") completes our discussion of unfunded commitment agreements.