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Reports US

US stock market daily report (March 20, 2014, Thursday)

March 20, 2014, Thursday, 22:34 GMT | 18:34 EST | 04:04 IST | 06:34 SGT
Contributed by Millennium Traders


U.S. Securities and Exchange Commission attorneys have initiated routine telephone calls to exchange-traded funds and mutual funds regarding investments in Russia. Regulators actions are an effort to make certain that investments risks in Russia are properly managed, with rising tensions over Crimea. Regulators reviews include the assurance that funds are not omitting or misrepresenting material information to the marketplace and investors. One fund was urged by the SEC, to consider updating its disclosures so that the events in Crimea, were addressed. It is regular procedure for the SEC to contact funds when international unrest occurs.

Funds of particular interest to the SEC include those with over 10% exposure to Russian securities, including stocks and bonds. Those funds include: Fidelity Emerging Europe Middle East Africa Fund, Goldman Sachs BRIC Fund, ING Russian Fund, T Rowe Price Emerging Europe Fund and Templeton BRIC Fund.

Norm Champ SEC Investment Management Division Director reportedly said, "We want to be proactive, so we are making sure the firms are thinking about it." SEC regulators remain focused on whether funds are being open with investors. Regulators also want funds to continue to monitor the situation in Russia and to prepare their response to various scenarios or outcomes during the conflict. Champ made a statement that Russian stocks could lose value due to sanctions in place from the United States and European Union.

The routine action by the SEC is not an attempt to tell funds how to invest, but merely to insure they are taking appropriate actions during the turbulence in Russia. The actions from the SEC began well before Jay Carney, White House spokesman on Tuesday, warned U.S. investors to steer clear of Russian stocks.

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