Mutual Fund Reforms I would like to See.................

[FinanceDude]

1)All directors on the board have to make an investment into the funds they are directors on equalling 5% of their net worth............

2)ALL mutual fund companies be REQUIRED to trasnfer cost basis on clients leaving their company........

3)Require all MF's to post their transaction costs in their expense ratios, maybe even as a separate line item.

That would be a start...........

 

[Texas Proud]

1)All directors on the board have to make an investment into the funds they are directors on equalling 5% of their net worth............

2)ALL mutual fund companies be REQUIRED to trasnfer cost basis on clients leaving their company........

3)Require all MF's to post their transaction costs in their expense ratios, maybe even as a separate line item.

That would be a start...........

Can't happen on 1... there are some directors on many more than 20 MF... what do you do then (yes, I know... get other directors.... but really...)

Don't know what you mean by two... explain better..

Irrelevent... since we got the total cost... what we need to find out is how much kickback the firm gets... or soft money...

 

[FinanceDude]

Can't happen on 1... there are some directors on many more than 20 MF... what do you do then (yes, I know... get other directors.... but really...)

Don't know what you mean by two... explain better..

Irrelevent... since we got the total cost... what we need to find out is how much kickback the firm gets... or soft money...

Number two: Let's say someone has MFs with Morgan Stanley, and wants to go to Vanguard. Neither Morgan Stanley, nor the fund company, is obligated to transfer cost basis. I understand the hassle before the Internet, but technology should make it a lot easier.

There are MANY TIMES in-kind transfers are done, and it would save time and hassle for clients. Say you own an American Fund for 10 years, why can't American Funds electronically transfer the cost basis history to the new brokerage firm, when they have to keep the records anyways..........

Total ER of a fund DOES NOT include things like bid-ask spreads or transaction costs........and the industry has resisted efforts to make them transparent.........

 

[Texas Proud]

Ahhh... understand what you are getting at... the purchase history that they built up on you... Yes, I agree, but it won't happen... your records with the firm is 'theirs'... you can try and give it to the new firm, but I doubt they would care one way or the other.... it is only the accountants that care...

 

[retire@40]

...ALL mutual fund companies be REQUIRED to trasnfer cost basis on clients leaving their company...

You might just get that wish.

There's a push in Congress right now to make it a requirement to track and report cost basis as you describe as well as reporting it to the investor and the IRS just as the sale is reported on the 1099-B.

 

[dmpi]

I'd like to see better use of voting rights to protect and enhance shareholder value. And not just for MF, but for ETFs too. Areas I would like to work on include:

1) Control CEO compensation.
2) Reducing stock dilution.
3) Reducing employee stock options.
4) Suing (on behalf of shareholders) for back dated options & other frauds.