06.25.09
Mutual Funds: Fund investors best friends: Rules and regulators
Don’t miss these top money and investing columns:
Investors to funds: See you in court
ETFs go after hedge funds
Secrets of a market expert
Investors can’t control the market’s performance, but they do have a say about how much they spend on mutual funds. And when it comes to fees and expenses, they increasingly have an influential ally: the U.S. government.
Securities regulators are advocating that shareholders be given more ammunition to sue fund companies over expenses. Meanwhile, federal lawmakers are pushing for clearer disclosure of the charges investors pay for 401(k) retirement accounts. And just last week, the Securities and Exchange Commission and the Department of Labor held a hearing on the viability of target-date funds as default options in company-sponsored retirement plans.
Expect the government to dig into other corners of the investment business in an effort to put individual shareholders on a level playing field. Regulation is no longer a four-letter word in Washington — indeed, after the devastating credit crisis, a crippling recession and the wealth-eroding bear market, regulation is a watchword.
INDUSTRY SPOTLIGHT: RULES AND REGULATORS U.S. shoots down courts in fund-fee case
The U.S. government has waded into a case that could determine the future of mutual-fund fees, and told the Supreme Court that it believes a lower court went too far in restricting investors’ ability to successfully sue their funds for charging too much. See FundWatch.
SEC outlines money-market fund changes
The Securities and Exchange Commission revealed its plan for new regulations governing the $3.5 trillion money-market mutual fund industry, but backed off a controversial proposal to require the funds to float their share prices. See full story.
Lawmakers push 401(k) fee disclosure
A House panel approved a bill that would require easily understandable fee disclosures for all 401(k) retirement accounts and would require that plans offer the option of an index-based investment. See full story.
SPECIAL FOCUS: HEDGE FUNDS Hedge fund, alternative managers say markets outlook still dim
If hedge fund managers have any insight at all, the credit crunch and market turmoil may not be over yet. See Global Investor.
Indexed ETFs geared to copy hedge-fund performance
Hedge funds have been shaken by poor returns and the Madoff scandal, but that hasn’t stopped exchange-traded funds from launching portfolios designed to capture the risk and return characteristics of hedge funds. See ETF Investing.
Van Eck starts mutual fund that invests in hedge funds
Van Eck Global said Tuesday it’s launching a new mutual fund that invests in hedge funds, the latest sign the mutual fund industry is expanding its offerings of alternative investments in the wake of the financial crisis. See full story.
Fund manager sees upside in financials, transportation, agricultural products
Fearful about where the U.S. stock market is headed? Mutual-fund manager Michael Cuggino isn’t. See The Stockpickers.
COMMENTARY Market veteran Bill O’Neil shares his investing secrets
Many market observers talk about how the rules of investing have changed in the past few years. Bill O’Neil says nothing has changed at all. See Chuck Jaffe.
Funds forgotten in overhaul
For mutual fund investors, the appropriate reaction to President Barack Obama’s plan to overhaul the financial system can be summed up in three words: Thanks for nothing. See full story.
Stupid Investment of the Week
Near the year’s half-way mark, the market’s three-month rally has resulted in something of a slump for a guy picking stupid investments, the same way that the market’s slump in 2008 made it a banner year for bad actors.
Mutual Funds: Fund investors’ best friends: Rules and regulators
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