Saturday, 14 March 2026

U.S. orders 2,500 marines, amphibious assault ship to Mideast

 


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Date: Sat, Mar 14, 2026 at 12:25 PM
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To: Friend <david.raymond.amos333@gmail.com>


MAGA! >

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---------- Forwarded message ---------
From: MarketScreener <noreply@marketscreener.com>
Date: Fri, Mar 13, 2026 at 7:11 PM
Subject: Weekly market update - Friday 13 March 2026:
To: <david.raymond.amos333@gmail.com>


Weekly market updateWeekly market update
Friday 13 March 2026
The central bankers' headache
Another negative week for financial markets. The drop was more pronounced on Wall Street, while Europe posted a limited decline. Markets are still moving in step with the conflict in Iran and reacting to fluctuations in oil prices. Oil has stabilized around $100 despite various announcements about the use of strategic reserves. Inflation fears remain very much on investors' minds, while the main central banks are meeting next week.
Weekly variations*
DOW JONES INDUST...
46,558.47  -1.99%
Chart DOW JONES INDUST...
NASDAQ 100
24,380.73  -1.06%
Chart NASDAQ 100
FTSE 100
10,261.15  -0.23%
Chart FTSE 100
GOLD
US$5,018.1  -1.14%
Chart GOLD
WTI
US$99.2  -8.15%
Chart WTI
EURO / US DOLLAR
US$1.14  -0.95%
Chart EURO / US DOLLAR
This week's gainers and losers
Up:

Nebius Group +26.44% : Nvidia announced a EUR 2bn investment in the company to jointly build AI-dedicated cloud infrastructure. The deal positions Nebius as a central neocloud player.

NIO INC +22.59% : The company returned to profit in the fourth quarter of 2025, with revenue growth, and expects to double its revenue in the first quarter of 2026. HSBC upgraded the stock from hold to buy, while Nomura and Yuanta Securities also turned positive on the name.

Xpeng +15.3% Stellantis is reportedly in talks with the company regarding agreements related to its European assets, as part of a possible reshaping of its operations in Europe. At the same time, Volkswagen has started production of its first model developed in partnership with Xpeng in China.

Iren Limited +13.3% This week, the company announced it was increasing its AI cloud capacity to 150,000 GPUs and launched a capital increase of up to USD 6bn in ordinary shares to finance this expansion.

Down:

Fair Isaac -23.36% : The credit-scoring specialist is suffering from the launch of an aggressive low-price strategy by its competitors (Equifax, Experian and TransUnion) around VantageScore 4.0. This is direct competition to Fair Isaac’s scoring system in the mortgage lending sector.

Centene -21.08% : The insurer announced a larger-than-expected decline in customer enrollment in Obamacare. This came on top of a summons from the House of Representatives as part of an investigation into alleged fraud linked to ACA subsidies.

Paramount -18.93% : The stock is being dominated by uncertainty surrounding the merger with Warner Bros. In addition, the Teamsters union is urging the U.S. Department of Justice to block the merger due to a lack of guarantees on jobs and labor conditions.

Rotork -15.2%: The British group initially saw its stock rise following the release of strong sales and profit results for 2025, but a weaker outlook for the oil and gas sector sent its share price lower.

GoDaddy -13.55% : The U.S. company published annual revenue guidance below expectations, due to slower-than-expected adoption of its new services. Analysts remain broadly confident on the stock nonetheless.

Atlassian -10.06% : The group is beginning a deep restructuring. The announcement of around 10% workforce cuts to refocus on AI did not have the same success as Block’s. The annual 55% decline reflects deeper concerns about AI monetization.
Chart Commodities
Commodities
Energy: Tensions are rising in the oil markets. Brent gained nearly 10% this week to reach about $101 per barrel, while WTI, which is less sensitive to geopolitical friction, rose 6% to around $95. The continued blockage of the Strait of Hormuz obviously explains this price increase. Producers in the Persian Gulf can no longer export their crude oil normally, and their storage infrastructure is filling up rapidly. To deal with this lack of space, several countries are reducing production. This is the case for Iraq, Kuwait, the United Arab Emirates and also Saudi Arabia. Faced with this supply tension, governments are deploying emergency measures. The International Energy Agency announced the release of a record volume of 400 million barrels from strategic reserves. At the same time, the U.S. government suspended certain economic sanctions targeting Russian oil for 30 days, until April 11. It should nevertheless be noted that these measures, while temporarily easing the markets, do not solve the root problem. The use of strategic reserves is a short-term measure. A lasting decline in crude oil prices depends on one condition only: the reopening of the Strait of Hormuz. The market will keep prices elevated as long as crude flows do not resume through this area.

Metals: Broadly speaking, aluminum is posting a sharp rise because of risks to global supply. By contrast, a stronger U.S. dollar is weighing on gold and copper. Aluminum prices reached their highest level since April 2022, above $3,500. The conflict in the Middle East is directly threatening production. The region accounts for around 10% of global aluminum supply. Gold is struggling to move higher despite geopolitical tensions. The yellow metal is trading around $5,100 per ounce. The rise in oil above $100 per barrel is reviving inflation fears. This economic backdrop is prompting the Fed to delay rate cuts. This monetary environment is strengthening the U.S. dollar. A strong dollar makes gold more expensive for buyers using other currencies, which limits demand.

Agricultural products: Agricultural prices are rising in Chicago. Geopolitical tensions in the Middle East and the sharp increase in oil prices are pushing soybean, wheat and corn prices higher. Wheat is trading around 600 cents per bushel, corn around 460 cents, and soybeans are up to 1,217 cents (May 2026 contracts).
Chart Commodities
Macroeconomics

Macro: The end of the week gave investors a faint smile in light of the latest macroeconomic releases from the United States. Core PCE inflation, the Federal Reserve’s preferred gauge, came in line with expectations at +0.4% month-on-month, while personal spending surprised to the upside with a stronger-than-expected rise of +0.4% versus +0.3% estimated. Of course, the effects of the Israeli-American intervention in Iran are not yet reflected in the data. Thus, as long as the Strait of Hormuz remains closed, oil prices should stay high and weigh on growth, fuel core inflation and limit the Fed’s room for maneuver. On that point, the status quo is favored for next week’s meeting, and only one rate cut is now expected for the whole year versus two previously. Meanwhile, the bond market tightened sharply, as illustrated by the German 10-year yield moving very close to its 2023 highs at 3.02%. Europe remains dependent on energy imports (oil and natural gas) and is therefore very sensitive to price movements.

Crypto: In what is otherwise not a very supportive backdrop for risky assets, bitcoin is on track to post its best week since September 2025. The leading cryptocurrency is up 9% since Monday and is once again flirting with $72,000. Spot Bitcoin ETFs have meanwhile seen more than $400m in net inflows since the start of the week. BTC is still down 17% since the start of 2026. As for the second-largest cryptocurrency by market value, ether (ETH), the trend is similar. It too is heading for its best week since September 2025, with a 9% rise, moving back above $2,000. The two largest crypto treasuries in the world helped support this rally. Michael Saylor, head of Strategy, remains extremely aggressive on bitcoin, with another 1,360 BTC purchased on March 9, 2026, a record. On his side, Thomas Lee is continuing his bullish strategy on ether through Bitmine Immersion Technologies, which announced the purchase of 60,976 ETH, equivalent to $128m. One thing is certain: despite a still fragile environment, crypto treasuries continue moving forward without flinching, even if that means exposing themselves to their main risk, namely a violent collapse in cryptocurrencies that would melt the value of their reserves and put their business model under pressure.
Historical Chart
The conflict with Iran could end very soon, but we must go all the way. That more or less sums up Donald Trump's remarks this week. Make sense of that. What is certain is that the economic consequences of the ongoing war will be visible for weeks, if not months. And the markets are gradually starting to price that in.
It is in this context that the Fed, the ECB, the Bank of England, the Bank of Japan, and the Swiss National Bank are meeting next week. In the short term, the status quo is the preferred solution, while waiting for more clarity. But in any case, there is no real good solution. An energy shock means both lower growth and higher inflation.
The MarketScreener team therefore wishes Christine Lagarde, Jerome Powell and all their colleagues the best of luck. And an excellent weekend to all of you.
Things to read this week
Death of Memory Chips: timing its fall Death of Memory Chips: timing its fall
Samsung Electronics crossed $1 trillion in market cap, SK Hynix is nearing $500 billion, and the KOSPI is up 30% YTD on the back of two stocks. The last time... Read more
Explainer: How does the equity research market work? Explainer: How does the equity research market work?
Every day, banks and brokers publish notes on listed companies, with "Buy", "Hold", or "Sell" recommendations on stocks and target prices raised or lowered.... Read more
Central banks at a deadlock Central banks at a deadlock
A single tool cannot solve every problem. Read more
 
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U.S. orders 2,500 marines, amphibious assault ship to Mideast after almost 2 weeks of war

Blast rocks Tehran during large rally amid latest wave of Israeli airstrikes

 
The Associated Press ·
Black smoke rises ahead as hundreds of people walk in a rally.
Black smoke rises following an explosion in Tehran, as Iranians take part in the Al-Quds Day rally, a commemoration in support of the Palestinian people held on the last Friday of the Islamic holy month of Ramadan. (Elaheh Asiabi/Fars News Agency/AFP/Getty)

The American military has ordered 2,500 marines and an amphibious assault ship to the Middle East, a U.S. official said Friday, in a major addition of forces in the region after nearly two weeks of war with Iran.

Meanwhile in the Iranian capital, a large explosion rocked a central square where thousands were gathered for an annual state-organized rally to support the Palestinians and call for Israel's demise. Israel had warned that it would target the area in central Tehran.

There were no reports of casualties. But the decision to proceed with the mass demonstration that was attended by some senior government officials, and Israel's threat to target the area, underscored the fierce determination on both sides nearly two weeks into a war that has rattled the global economy and shows no sign of letting up.

Iran has continued to launch widespread missile and drone attacks on Israel and neighbouring Gulf states, and has effectively closed the Strait of Hormuz, through which a fifth of the world's traded oil passes, even as U.S. and Israeli warplanes pummel military and other targets across Iran.

A billboard shows a graphic depicting Iran's Supreme Leader with military commanders standing nearby.    A billboard depicts Iran's new Supreme Leader Ayatollah Mojtaba Khamenei with military commanders as people attend the annual Quds Day event in Tehran. (Majid Saeedi/Getty)

The latest attacks come as Israel said it had begun a wave of strikes targeting Iran's infrastructure. The military said that the Israeli air force had hit more than 200 targets in Iran over the past 24 hours, including missile launchers, defence systems and weapons production sites.

Israel's military also said it has struck more than 7,600 sites in Iran and more than 1,100 in Lebanon in the war.

Marines and assault ship will add to U.S. forces

Elements from the 31st Marine Expeditionary Unit and the amphibious assault ship USS Tripoli have been ordered to the Middle East, according to the U.S. official, who spoke to The Associated Press on condition of anonymity to discuss sensitive military plans.

Marine Expeditionary Units are trained and equipped to conduct amphibious landings, but they also specialize in bolstering security at embassies, evacuating civilians and disaster relief. The deployment does not necessarily indicate that a ground operation is imminent or will take place at all.

The deployment of the additional marines was first reported by The Wall Street Journal.

The 31st Marine Expeditionary Unit, as well the Tripoli and other amphibious assault ships carrying the marines, are based in Japan and have been at sea in the Pacific Ocean for several days, according to images released by the military. The Tripoli was spotted by commercial satellites sailing alone near Taiwan. That location puts it more than a week away from the waters off Iran.

While the total number of U.S. service members on the ground in the Middle East is not clear, Al-Udeid Air Base alone, one of the largest in the region, typically houses some 8,000 U.S. troops.

U.S. military targets Iran's Kharg Island

President Donald Trump said Friday that U.S. forces have "obliterated" military targets on Iran's Kharg Island and warned that the oil infrastructure there could be next.

The small island in the Persian Gulf is the primary terminal through which Iran's oil exports pass.

A satellite image of an oil terminal on an island.    A satellite image shows an oil terminal at Iran's Kharg Island on February 25, 2026, before the war began. (Planet Labs PBC/Reuters )

Trump announced the action in a social media post as he prepared to fly to Florida for the weekend. The president answered questions from reporters travelling with him before he boarded Air Force One, but he did not mention the latest U.S. military operation against Iran.

Asked during the Fox News Radio interview — which was recorded Thursday night and aired the following morning — whether he was thinking about seizing the island, the president said it was "not high on the list" but also he could "change my mind in seconds."

At a news conference on Friday, U.S. Secretary of War Pete Hegseth said that more than 15,000 targets have been struck in Iran; more than 1,000 a day since the war began on Feb. 28.

WATCH | Hegseth says 'don't worry' about Iranian threat to shipping:
 
Investigating officer assigned to probe on Iran school strike, says U.S. secretary of war
March 13|
Duration 7:49
 
The U.S. has designated a general outside of Central Command to complete an investigation on deadly missile attack on a girls' school in Minab, Iran. U.S. media have reported that preliminary findings of an internal military investigation suggest the strike may have been the result of U.S. use of outdated targeting data.

Iran's new Supreme Leader Mojtaba Khamenei made his first public statements on Thursday, vowing to keep fighting, and threatening to open "other fronts" in a war that has already disrupted world energy supplies, the global economy and international travel.

But the written statement added to speculation about Khamenei's whereabouts and health. He has not been seen or heard from publicly since the war started, and Iranian officials have said he was "lightly" injured in the same airstrike that killed his father and predecessor.

Hegseth said in his news conference that Khamenei was "likely disfigured" but did not elaborate on or provide evidence.

The U.S. military says all six airmen aboard an American KC-135 refuelling plane that went down in Iraq are dead. The military says the crash is being investigated.

A French soldier who was stationed in the north of the country was also killed in an attack, the French president said Friday.

Rally carries on despite attacks

The explosion in Tehran rocked the Ferdowsi Square area midday, where thousands had gathered for an annual Quds Day rally in which they chanted "death to Israel" and "death to America."

Israel had issued a warning on a Farsi-language X account for people to clear the area shortly before the blast. But few Iranians would have seen it, as authorities have almost completely shut down the internet since the start of the war.

Footage from the scene showed people chanting "God is greatest," as smoke rose in the area.

The Israeli military later posted a second message in Farsi, noting the head of Iran's judiciary was at the rally and criticizing Iran for blocking many from seeing their warning.

Iranians stand on posters depicting images of the US president Donald Trump (L) and Israeli Prime Minister Benjamin Netanyahu.Iranians stand on posters depicting images of the U.S. President Donald Trump and Israeli Prime Minister Benjamin Netanyahu as they take part in the Al-Quds Day rally in Tehran. (AFP/Getty Images)

There were no immediate reports of casualties or damage.

Senior security official Ali Larijani told Iranian media covering the rally that the suspected Israeli attack was a "sign of its desperation."

Iranian authorities say that more than 1,300 people have been killed there, and Israel has reported 12 deaths. The U.S. has lost at least 13 soldiers, while another eight have suffered severe injuries.

Iran, meanwhile, launched multiple attacks early Friday on Gulf Arab states, including dozens of drones at Saudi Arabia, following warnings from Khamenei about hosting American bases.

In Lebanon, at least eight people were killed in an Israeli strike on its southern coastal city of Sidon, Lebanon's Health Ministry said Friday. Nine others were wounded, the ministry added. The toll could rise as rescuers search the rubble.

The ministry said 773 people, including more than 100 children and 62 women, have been killed in Lebanon in the last 10 days of the conflict between Israel and Iran-backed Hezbollah militants. More than 1,900 people have been wounded, it said.

New Iranian attacks across region

Iran continued its daily attacks on oil and other infrastructure across the Gulf. In Oman, two people were killed when two drones crashed in the Sohar region, the Oman News Agency reported.

The U.S. Navy destroyer USS Oscar Austin shot down an Iranian ballistic missile over Turkey on Friday, a U.S. official said on condition of anonymity in order to discuss ongoing military operations. It was the third such interception over the NATO member in the last two weeks.

Residents in the southern Turkish city of Adana reported hearing a loud explosion and sirens sounding at Incirlik Air Base, which is used by U.S. forces.

WATCH | Khamenei vows more attacks:
 
Iran's new supreme leader vows to keep Hormuz shut, ramp up attacks
March 13|
Duration 2:38
 
In his first message as Iran's new supreme leader, Mojtaba Khamenei promised to continue blocking the Strait of Hormuz, open new fronts in the war and keep attacking U.S. bases in the region.

A building at the Dubai International Financial Center was damaged by debris from what authorities called a "successful interception."

Iran said earlier this week that it would target banks and financial institutions, after an airstrike hit a bank in Tehran.

A patrol boat passes by on the sea.    A coast guard vessel patrols the waters near Muscat, Oman, on Thursday as Iran's blockade of the Strait of Hormuz continued to throttle the region's oil exports. (Benoit Tessier/Reuters)
CBC's Journalistic Standards and Practices
 
 


---------- Original message ---------
From: Minister of Finance / Ministre des Finances <minister-ministre@fin.gc.ca>
Date: Sat, Mar 14, 2026 at 2:50 PM
Subject: Automatic reply: Former White House Counsel Gregory Craig Joins Foley Hoag
To: David Amos <david.raymond.amos333@gmail.com>

The Department of Finance Canada acknowledges receipt of your electronic correspondence.
Please be assured that we appreciate receiving your comments.


Le ministère des Finances Canada accuse réception de votre courriel.
Nous vous assurons que vos commentaires sont les bienvenus.
 
 
 
 ---------- Original message ---------
From: David Amos <david.raymond.amos333@gmail.com>
Date: Sat, Mar 14, 2026 at 2:49 PM
Subject: Fwd: Former White House Counsel Gregory Craig Joins Foley Hoag
To: <ValhallaFirearmsTraining@gmail.com>, <Valhalla@leviathangroupllc.com>
Cc: <bobpozen@mit.edu>, <Sean.Fraser@parl.gc.ca>, <justmin@gov.ns.ca>, <fin.minfinance-financemin.fin@canada.ca>, <pm@pm.gc.ca>, <gcraig@foleyhoag.com>



---------- Forwarded message ---------
From: David Amos <david.raymond.amos333@gmail.com>
Date: Tue, Jan 13, 2026 at 10:56 AM
Subject: Former White House Counsel Gregory Craig Joins Foley Hoag
To: GUESS WHO

Here is a link I would like to share from Foley Hoag -
 



 
 
 

U.S. to send 2,500 Marines to the Middle East | CTV National News for March 13, 2026

CTV News 
 
Mar 14, 2026
U.S. President Donald Trump said the U.S. bombed military sites Friday on an island vital to Iran’s oil network, while an American official said 2,500 more Marines and an amphibious assault ship are being sent to the Middle East nearly two weeks into the war with the Islamic Republic.
 

104 Comments

 
David Amos
Who do you believe? 
 
https://www.youtube.com/watch?v=fXCzxIuQYDw
 
 

The Iran War SPIRALS Out Of Control w/ Anthony Aguilar LIVE 5 PM PST

Valhalla VFT 
 
►Support Anthony's Campaign Here: https://www.aguilarforuscongress.com/... 
 


Nathan Cornacchia

Instructor # 3131430 | Valhalla Firearms Training

Valhalla Firearms Training LLC

669 Greenwood ST, P.O. BOX 34, Junction City , OR. 97448

ValhallaFirearmsTraining@gmail.com

Contact Hours: Monday-Friday 0900-1700 PST



Sunday, 6 July 2025

Where did all the hearings go???

---------- Original message ---------
From: Minister of Finance / Ministre des Finances <minister-ministre@fin.gc.ca>
Date: Mon, Jul 7, 2025 at 1:56 PM
Subject: Automatic reply: 617 954 4225 RE Robert Pozen Former executive chairman of MFS Investment Management
To: David Amos <david.raymond.amos333@gmail.com>

The Department of Finance acknowledges receipt of your electronic correspondence. Please be assured that we appreciate receiving your comments.Le ministère des Finances Canada accuse réception de votre courriel. Nous vous assurons que vos commentaires sont les bienvenus. 
 


---------- Original message ---------
From: Fraser, Sean - M.P. <Sean.Fraser@parl.gc.ca>
Date: Mon, Jul 7, 2025 at 1:57 PM
Subject: Automatic reply: 617 954 4225 RE Robert Pozen Former executive chairman of MFS Investment Management
To: David Amos <david.raymond.amos333@gmail.com>


Thank you for your contacting the constituency office of Sean Fraser, Member of Parliament for Central Nova.


This is an automated reply.


Please note that all correspondence is read, however due to the high volume of emails we receive on a daily basis there may be a delay in getting back to you. Priority will be given to residents of Central Nova.


To ensure we get back to you in a timely manner, please include your full name, home address including postal code and phone number when reaching out.

Thank you.

-------------

Merci d'avoir contacté le bureau de circonscription de Sean Fraser, député de Central Nova. Il s'agit d'une réponse automatisée.

 

Veuillez noter que toute la correspondance est lue, mais qu'en raison du volume élevé de courriels que nous recevons quotidiennement, il se peut que nous ne puissions pas vous répondre dans les meilleurs délais.

 

Pour que nous puissions vous répondre dans les meilleurs délais, veuillez indiquer votre nom complet, votre adresse personnelle, y compris le code postal, et votre numéro de téléphone lorsque vous nous contactez.

 

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Facebook : facebook.com/SeanFraserMP

Twitter : @SeanFraserMP

Instagram : SeanFraserMP

www.seanfrasermp.ca

Sans frais : 1-844-641-5886

 

 
 
---------- Original message ---------
From: David Amos <david.raymond.amos333@gmail.com>
Date: Mon, Jul 7, 2025 at 1:53 PM
Subject: Fwd: 617 954 4225 RE Robert Pozen Former executive chairman of MFS Investment Management
To: <bobpozen@mit.edu>, fin.minfinance-financemin.fin <fin.minfinance-financemin.fin@canada.ca>, ministryofjustice <ministryofjustice@gov.ab.ca>, justmin <justmin@gov.ns.ca>, Mike.Comeau <Mike.Comeau@gnb.ca>, <CrownAdminOttawa@ontario.ca>, mcu <mcu@justice.gc.ca>, Sean.Fraser <Sean.Fraser@parl.gc.ca>, pm <pm@pm.gc.ca>




---------- Forwarded message ---------
From: David Amos <david.raymond.amos333@gmail.com>
Date: Mon, Jul 7, 2025 at 1:49 PM
Subject: 617 954 4225 RE Robert Pozen Former executive chairman of MFS Investment Management
To: <Leadership@mfs.com>, <kimc714@mit.edu>
 
 
 
 
 
 
 
 
 
 
 
The broader answer is that MFS wants to lead the industry to lower and more transparent execution costs. To accomplish this objective, MFS will need support from other asset managers as well as the SEC. Section 28(e) of the Securities Exchange Act provides a safe harbor for asset managers using “soft dollars” for research and brokerage services. Initially, the SEC interpreted this safe harbor narrowly--allowing payment in “soft dollars” only if a good or service or product were not readily available for cash. Several years later, however, the SEC broadened the safe harbor to include any “legitimate” purpose for soft dollars (SEC Exchange Act Release 23170, April 23, 1986). The SEC should move back to its initial narrow interpretation of 28(e) to reduce the reliance on the use of “soft dollars”.
 
II. Individualized Expense Reporting

MFS will issue an individualized quarterly statement, rather than a general listing of fund expenses in basis points, which will show each fund shareholder a reasonable estimate of his or her actual fund expenses in dollar terms. 
 
The MFS design for this individualized quarterly statement is cost effective as a result of one key assumption: that shareholders hold their funds for the whole prior quarter. This assumption is reasonable because over 90% of MFS shareholders fall into this category.
 
At present, the prospectus of every mutual fund contains an expense table listing the
various categories of fund expenses in basis points. The table might say, for instance:

Advisory Fee 53 bp
Transfer Agency Fee 10 bp
Other Fees 2 bp
12 b-1 Fee 25 bp
Total Expenses 90 bp
 
In addition, the prospectus of every fund includes a hypothetical example of a $10,000 investment in the fund to show the dollar amount of actual fund expenses paid by such a fund shareholder during the relevant period. The hypothetical example for the mutual fund with the expenses described above, for instance, would show $90 in total fund expenses over the last year.

Nevertheless, some critics have argued that mutual fund investors need customized
expense statements. By that, these critics mean the actual expenses paid by a shareholder in
 
3 of 6

several funds based on his or her precise holding period as well as the fund dividends during that
period. For example, we would have to compute the exact expenses of a shareholder who held
Fund A from January 15 until March 31 without reinvesting fund dividends; another shareholder
who held Fund B for the whole year and reinvested all fund dividends; and yet another
shareholder who held Fund C from February 1 until June 15 as well as from August 22 until
December 11 (during both periods, assuming no record date for fund dividends occurred).
This type of customized expense statement would, in my opinion, involve enormous
computer programming costs. The program would have to track the holdings of every fund
shareholder on a daily basis, take into account whether a fund dividend was reinvested or paid
out to the shareholder, and apply monthly basis point charges to fund balances reflecting monthly
appreciation or depreciation of fund assets. Of course, these large computer costs would
ultimately be passed on to fund shareholders.
At MFS, we will provide every fund shareholder with an estimate of his or her actual
expenses on their quarterly statements.2 We can do this at an affordable cost by making one
reasonable assumption—that the fund holdings of the shareholder at the end of the quarter were
the same throughout the quarter. Although this is a simplifying assumption, it produces a good
estimate of actual fund expenses since most shareholders do not switch funds during a quarter.
Indeed, this assumption will often lead to a slightly higher estimate of individualized expenses
than the actual amount because some shareholders will buy the fund during the quarter and other
shareholders will reinvest fund dividends during the quarter.
In addition, MFS will send its shareholders in every fund’s semi-annual report the
total amount of brokerage commissions paid by the fund during the relevant period as well as the
fund’s average commission rate per share (for example, 4.83 cents per share on average). But
this information on brokerage commissions should be separated from the fund expense table
because all the other items in the table are ordinary expenses expressed in basis points. By
contrast, brokerage commissions are a capital expense added to the tax basis of the securities
held by the fund, and brokerage commissions are expressed in cents per share.
2 These individualized expenses will not include brokerage costs because they are capitalized in the cost of the portfolio
security.

4 of 6

II. Enhanced Governance Structure

The mutual fund industry has a unique governance structure: the fund is a separate entity from its external manager. The independent directors of the fund must annually approve the
terms and conditions of the fund’s contract with its external manager. Of course, the independent directors usually reappoint the management company. In an industrial company, how often do the directors throw out the whole management team? But the independent directors of most mutual funds, in my experience, do represent fund shareholders by negotiating for contract terms and  monitoring potential conflicts of interest.
 
At MFS, we believe we have the most advanced form of corporate governance in the
industry. To begin with, over 75% of the board is comprised of independent directors, who elect their own independent chairman. The chairman leads the executive sessions of independent directors, which occur before or after every board meeting. The independent chairman also helps set the board’s agenda for each meeting. A lead independent director could definitely take charge of the executive sessions and a lead director could also help set the board’s agenda. Thus, it
does not matter which title is employed; the key is to insure that a senior independent director
plays these two functions.
In many boards, the independent directors have their own independent counsel, as
the MFS boards do. But the independent directors of the MFS funds are going one step further by
appointing their own compliance officer. This officer will monitor all compliance activities by MFS
as well as supervise the fund’s own activities, and will report regularly to the Compliance
Committee of the Board (which itself is composed solely of independent directors).
On the management company side, MFS is the only company I know of that has a
non-executive chairman reporting to the independent directors of the MFS funds. This is a new
position designed to assure that the management company is fully accountable to the funds’
independent directors.

Finally, MFS as a management company has established the new position of Executive Vice President for Regulatory Affairs, and filled the position with a distinguished industry veteran. In addition, MFS has hired a distinguished law firm partner as its new general

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counsel. Both will serve on the executive committee of MFS. The new Executive Vice President will be in charge of several regulatory functions—compliance, internal audit and fund treasury.

This high profile position within MFS is more than symbolic; it represents the great significance
given by MFS to these regulatory functions. While these functions are performed in most fund
management companies, it is rare to see the person in charge of these functions having the title of executive vice president and serving on the executive committee of the firm.

Conclusions

In summary, MFS is trying to establish standards of best practices in three important
areas to fund shareholders: 
 
1) reduced reliance on “soft dollars”, 
 
2) individualized expense reporting, and 
 
3) enhanced governance structure. Other management firms are trying to take the lead in setting industry standards in other areas. At the same time, the SEC is in the process of
proposing and adopting a myriad of rules on disclosure requirements and substantive prohibitions or the fund industry—which overlap to a degree with the efforts of the fund management firms.

Because the SEC and the management firms are making such serious efforts to develop
higher behavioral norms for the mutual fund industry, it might be useful for Congress to monitor these efforts before finalizing a bill on mutual fund reforms. These are complex issues that may be better suited to an evolutionary process, led by an expert public agency with the flexibility to address the changing legal and factual environment.
 
Thank you again for this opportunity to testify on mutual fund reform. I would be pleased
to answer any questions the Chairman or Committee Members might have. 
 
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Robert C. Pozen


  • Former president of Fidelity Investments and executive chairman of MFS Investment Management
  • Expert who has made hundreds of appearances to companies, television audiences and leaders around the world
  • Writer for the New York Times, the Wall Street Journal, the Financial Times, the Harvard Business Review, and more around the globe

Support Staff

Kimberly Crumpton

(617) 324-7519
kimc714@mit.edu

Get in Touch

 
 
 




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