Fundsters probably won't be surprised to hear that Jack Bogle
is publicly praising a new Morningstar
study emphasizing the importance of fees in predicting mutual fund performance. The Vanguard
] founder penned
a column in today's Wall Street Journal
, touting the Morningstar study released on August 9 (see The MFWire, 8/9/2010
) and accusing the fund industry of pushing fees higher.
"Returns come and go, as it were, but costs go on forever," Bogle writes. "Despite the irrefutable evidence on the impact of fund costs, fund expenses continue their upward march ... Conclusion: The huge economics of scale available in managing other people's money have largely been arrogated by fund managers to their own benefit rather than to the benefit of fund shareholders."
Neil Anderson, Managing Editor
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