The purpose of this study is to discuss research that identifies heterogeneous mutual fund and investor attributes and relations that explain dispersion in fund fees. One might think there is a short list of attributes and relations, such as high versus low expense ratios, that tells the full...

This is a first-step mutual funds study that provides analysis and disclosure of the elements of a newly defined total expense ratio, which includes the regulatory expense ratio, brokerage commissions, and implicit trading costs. Three structures are provided that identify whether a particular...

The overall evidence indicates that small-cap mutual funds with largest total assets are the most managerially efficient, as defined by DEA. And, this efficiency comes with conservative portfolio investment style attributes consistent with a strong value style of investing

The recent revelations of major scandal in the mutual funds industry have brought intense feelings of betrayal and financial loss to millions of fund shareholders, whose assets were improperly and illegally diminished. Shareholders need and deserve much greater protection and transparency of...

It is not enough to say that particular mutual funds have very excessive and most excessive expense ratios. In addition, these high cost funds are associated with negative portfolio characteristics that include more risky and less diversified portfolios, higher trading costs, and lower earnings....

The mutual funds industry does not compete on price. Mutual fund managers are the primary beneficiaries of fund economies of scale. Mutual fund managers charge too much for management fees. Multiple share class funds have higher management fees and total expenses than single class funds....

This paper provides in-depth discussion of important issues related to mutual fund distribution. The first two topics are fund distribution channel characteristics and Rule 12b-1 fees and distribution. Distribution channel characteristics discuss direct channel, advice channel, retirement...

Revenue sharing payments are mutual fund distribution costs that conflict with continuing shareholder interests by directly reducing fund assets and shareholder returns. The “stated” purpose of revenue sharing payments is to defray broker costs of servicing customer accounts and for...