Hidden fund scandal: Ownership's true cost.(Other Views)

Investment News, August, 2004

Byline: Brent Brodeski Late trading; soft-dollar and directed-brokerage arrangements; board members who do the bidding of fund managers - these are just a few of the things Securities and Exchange Commission Chairman William H. Donaldson had in mind in May when he said that the SEC would move at "warp speed'' to ensure "fundamental reform of how the mutual fund industry does business.'' What's missing from the list of mutual fund reforms now being contemplated? Conspicuous by its absence is what could become the No.

1 sore point for investors over the next few years: the true cost of owning mutual funds. Mutual fund investors may never come to appreciate fully the importance of independent board members. Such investors may never even comprehend such...

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