Good News?

As the adult male said, "I've got some good intelligence and I've got some bad news. What make you desire to hear first?" It was replied, "Tell me the good intelligence first". The good intelligence is that they are going to do some changes in the common monetary fund industry reporting to assist the investor and the bad intelligence is it isn't going to do any difference in your underside line.

It looks that us small investors are getting the usual window dressing to do it look that we are getting a good deal, but when you travel in the shop to seek on the wares it still doesn't suit any better.

Here is what the Securities and Exchange Committee passed as a new ordinance for registered common funds. Instead of 50% of the Board of Directors being from outside the company they now must choose 75% from outside the company. Can anyone state me what difference that is going to make? The cats who have the monetary fund will pick people who are friendly to their goals. Volition they care any more than for the investors than they make now? Window dressing.

One new ordinance I make hold should assist a small (but very little) is the demand to supply more than information to shareholders about their contracts with investing advisors and how they are approved. Big deal. The common monetary fund industry said this volition rise their costs. How? They have got the information. All they have got to make is add it to their prospectus. Also retrieve that the course catalog was written for the Dilbert lawyers at the second to ran into the ordinances and not to give you apprehensible information.

Do you retrieve what happened to your finances from 2000 to 2003? Most investors lost from 40% to 60% of their money. Let's hope they don't engage back those same analysts again, but they probably will. Just their contracts will be different. It is dubious their consequences will change.

Furthermore these new fantastic, fantastic regulations (sic) will not travel into consequence for 18 months. I think as one of the 95 million common monetary monetary fund proprietors I will have got to wait, but I'm not going to throw my breath.

What I did not hear from the second was that common fund managers should be paid on public presentation of how well they make with your money. Now they get paid by how much money they have got or can get and maintain in the fund. Sounds backwards to me. See if you can get your broker to return all committees if your monetary fund makes not do money. Don't throw your breath on this 1 either.

Eighteen calendar months from now investors are going to experience a batch better when all that good intelligence travels into effect. Yeah.