The Economics of Mutual Fund Markets: Competition Versus Regulation - read free eBook in online reader or directly download on the web page. Select files or add your book in reader. Download and read online ebook The Economics of Mutual Fund Markets: Competition Versus Regulation write by William Baumol. This book was released on 2012-12-06. The Economics of Mutual Fund Markets: Competition Versus Regulation available in PDF, EPUB and Kindle. The original impetus for this research was provided several years ago by a request to assist Counsel for Fidelity Management and Research Corporation in analyzing the mutual fund industry, with particular emphasis on money market mutual funds. We were asked to focus our efforts on the mechanism by which the advisory fees of mutual funds are determined. This request arose out of litigation that challenged the level of advisory fees charged to the shareholders of the Fidelity Cash Reserve Fund. Subsequently, we were asked to provide similar assistance to Counsel for T. Rowe Price Associates regarding the fees charged to shareholders of their Prime Reserve Fund. 1940, advisers of Under the Investment Company Act of mutual funds have a fiduciary duty with respect to the level of fees they may charge a fund's shareholders. Since the passage of the Investment Company Act, there have been numerous lawsuits brought by shareholders alleging that advisory fees were excessive. In these lawsuits, the courts have failed to provide a set of standards for determining when such fees are excessive. Instead, they have relied on arbitrary and frequently ill-defined criteria for jUdging the reasonableness of fees. This failure to apply economic-based tests for evaluating the fee structure of mutual funds provided the motivation for the present book, which undertakes a comprehensive analysis of the economics of the mutual fund industry.
The Mutual Fund Industry
The Mutual Fund Industry - read free eBook in online reader or directly download on the web page. Select files or add your book in reader. Download and read online ebook The Mutual Fund Industry write by R. Glenn Hubbard. This book was released on 2010. The Mutual Fund Industry available in PDF, EPUB and Kindle. Mutual funds form the bedrock of retirement savings in the United States, and, considering their rapid growth over recent decades, are sure to become even more financially critical in the coming decades. Because the size of fees paid by investors to mutual fund advisers can strongly affect the return on investment, these fees have become contentious in Congress and the courts, with many arguing that investment advisers grow rich at the expense of investors. This groundbreaking book not only conceptualizes a new economic model for the industry but uses this model to test price competition between investment advisers. Its highly experienced authors track the growth of the industry over the past twenty-five years and present the arguments and evidence both for and against theories of adviser malfeasance, as well as the assertion that market forces fail to protect investors' returns from excessive fees. The volume briefly reviews the regulatory history of mutual fund fees and leading case decisions addressing excessive fees. It also reveals the extent to which the governance structure of mutual funds impacts fund performance. There is no greater text for those who seek to understand today's mutual fund industry, including investors, money managers, fund directors, securities lawyers, economists, and those concerned with regulatory policy toward mutual funds
The Economics of Mutual Fund Markets: Competition Versus Regulation
The Economics of Mutual Fund Markets: Competition Versus Regulation - read free eBook in online reader or directly download on the web page. Select files or add your book in reader. Download and read online ebook The Economics of Mutual Fund Markets: Competition Versus Regulation write by William Baumol. This book was released on 1989-12-31. The Economics of Mutual Fund Markets: Competition Versus Regulation available in PDF, EPUB and Kindle. The original impetus for this research was provided several years ago by a request to assist Counsel for Fidelity Management and Research Corporation in analyzing the mutual fund industry, with particular emphasis on money market mutual funds. We were asked to focus our efforts on the mechanism by which the advisory fees of mutual funds are determined. This request arose out of litigation that challenged the level of advisory fees charged to the shareholders of the Fidelity Cash Reserve Fund. Subsequently, we were asked to provide similar assistance to Counsel for T. Rowe Price Associates regarding the fees charged to shareholders of their Prime Reserve Fund. 1940, advisers of Under the Investment Company Act of mutual funds have a fiduciary duty with respect to the level of fees they may charge a fund's shareholders. Since the passage of the Investment Company Act, there have been numerous lawsuits brought by shareholders alleging that advisory fees were excessive. In these lawsuits, the courts have failed to provide a set of standards for determining when such fees are excessive. Instead, they have relied on arbitrary and frequently ill-defined criteria for jUdging the reasonableness of fees. This failure to apply economic-based tests for evaluating the fee structure of mutual funds provided the motivation for the present book, which undertakes a comprehensive analysis of the economics of the mutual fund industry.
The Economics of Mutual Fund Markets
The Economics of Mutual Fund Markets - read free eBook in online reader or directly download on the web page. Select files or add your book in reader. Download and read online ebook The Economics of Mutual Fund Markets write by William J. Baumol. This book was released on 1990. The Economics of Mutual Fund Markets available in PDF, EPUB and Kindle.
Swing Pricing and Fragility in Open-end Mutual Funds
Swing Pricing and Fragility in Open-end Mutual Funds - read free eBook in online reader or directly download on the web page. Select files or add your book in reader. Download and read online ebook Swing Pricing and Fragility in Open-end Mutual Funds write by Dunhong Jin. This book was released on 2019-11-01. Swing Pricing and Fragility in Open-end Mutual Funds available in PDF, EPUB and Kindle. How to prevent runs on open-end mutual funds? In recent years, markets have observed an innovation that changed the way open-end funds are priced. Alternative pricing rules (known as swing pricing) adjust funds’ net asset values to pass on funds’ trading costs to transacting shareholders. Using unique data on investor transactions in U.K. corporate bond funds, we show that swing pricing eliminates the first-mover advantage arising from the traditional pricing rule and significantly reduces redemptions during stress periods. The positive impact of alternative pricing rules on fund flows reverses in calm periods when costs associated with higher tracking error dominate the pricing effect.
