MarketWatch columnist Chuck Jaffe earlier this month revealed his holiday wish list. In the column, written in the form of a letter addressed to "fund industry bigwigs," Jaffe asked executives to get rid of mediocre funds.

If a fund's biggest asset to the company is that marketers can sell it -- rather than deliver superior performance -- it should be out of business. Killing off mediocre funds that add more to the sponsor's bottom line than to the customer's portfolio would be a blessing. Stop selling the mediocrity.

Jaffe has seven other items on his wish list. Among them: he wants the dollar amount that shareholders pay in expenses to show up in statements; and he also wants fund firms to provide comparative fee information showing a fund's expense ratio versus the average in its peer group. 

Edited by: HFD


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