Quantcast
The MFWire
Manage Email Alerts | Sponsorships | About MFWire | Who We Are

Subscribe to MFWire.com's News Alerts [click]

Rating:Morningstar Calls for a 'Sweeping Overhaul of Fund Expense Ratios' Not Rated 5.0 Email Routing List Email & Route  Print Print
Thursday, October 21, 2010

Morningstar Calls for a 'Sweeping Overhaul of Fund Expense Ratios'

News summary by MFWire's editors

Fundsters interested in possible 12b-1 fee reform may want to check out Morningstar today. Karen Dolan, director of fund analysis, sent a letter to the Securities and Exchange Commission, arguing that the proposals on the table for changing 12b-1 fees don't go far enough.

"We urge you to consider a sweeping overhaul of fund expense ratios, from top to bottom, that would break fees into appropriate, easy-to-understand buckets and standardize the accounting," Dolan wrote. "Step in and help bring the virtues of simplicity and transparency back to the mutual fund industry."

In the letter, Dolan asked the SEC to start from scratch and require the breakdown of mutual fund fees into four basic parts: administrative overhead, advice, management , and sales and marketing.

"Each of these activities is a legitimate use of fund assets," Dolan added, "but, without knowledge of how much is being funneled where, fund shareholders have no way to know if the balance between those activities is in line with their needs and expectations." 

Edited by: Neil Anderson, Managing Editor


Stay ahead of the news ... Sign up for our email alerts now
CLICK HERE

5.0
 Do You Recommend This Story?



GO TO: MFWire
Return to Top
 News Archives
2020: Q4Q3Q2Q1
2019: Q4Q3Q2Q1
2018: Q4Q3Q2Q1
2017: Q4Q3Q2Q1
2016: Q4Q3Q2Q1
2015: Q4Q3Q2Q1
2014: Q4Q3Q2Q1
2013: Q4Q3Q2Q1
2012: Q4Q3Q2Q1
2011: Q4Q3Q2Q1
2010: Q4Q3Q2Q1
2009: Q4Q3Q2Q1
2008: Q4Q3Q2Q1
2007: Q4Q3Q2Q1
2006: Q4Q3Q2Q1
2005: Q4Q3Q2Q1
2004: Q4Q3Q2Q1
2003: Q4Q3Q2Q1
2002: Q4Q3Q2Q1
 Subscribe via RSS:
Raw XML
Add to My Yahoo!
follow us in feedly




©All rights reserved to InvestmentWires, Inc. 1997-2020
14 Wall Street | 20th Floor | New York, NY 10005 | P: 212-331-8968 | F: 212-331-8998
Privacy Policy :: Terms of Use