Mutual Funds: Conflicted Distribution and the New Total Expense Ratio Construct

Abstract

The purpose of this article is to present an updated version of the New Total Expense Ratio,which provides an enhanced and inclusive construct of mutual fund fees and expenses as they relate to distribution of fund shares through brokers and financial intermediaries.The Ratio construct provides inclusive disclosure while the SEC’s weak effort omits so much of what investors should have in the way of normative transparency of disclosure.

TOPICS: Mutual fund performance, information providers/credit ratings, manager selection