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SEC Reviewing Excessive Mutual Fund Fees
November 21, 2011
According to a recent Ignites article, the SEC is currently conducting a number of investigations regarding excessive mutual fund fees. Although the SEC issued a "Cease and Desist" order in a case regarding subadvisory fees on November 16th, it is likely that the SEC… read more
SEC Issues “Cease and Desist” Order for Improper Fee Arrangement
November 17, 2011
On November 16, 2011, the SEC issued a "Cease and Desist" order against Morgan Stanley Investment Management ("the adviser") for paying fees to an unaffiliated entity for research services (that the order characterizes as sub-adviser) that the SEC states were not rendered to a closed-end… read more
Lipper Report: Subadvisor Fees and Expenses
October 17, 2011
Lipper has recently released a study on subadvised fund expenses and management fees. Lipper found that, on average, subadvised funds have slightly higher median total expense ratios and slightly higher management fees than non-subadvised funds. Lipper points out that there may be legitimate reasons for… read more
Ninth Circuit Decision in Fee Litigation
August 25, 2011
The Ninth Circuit Court of Appeals has affirmed a district court decision holding that the plaintiffs failed to prove that Capital Research breached its fiduciary duty under Section 36(b) of the Investment Company Act of 1940 in an excessive fee suit against the funds'… read more
Law Firms Examine the Janus Decision
June 30, 2011
Earlier this month, the Supreme Court announced its decision in the Janus Capital Group v. First Derivative Traders case. The Court decided in favor of Janus, holding that Janus prevails because, though Janus may have been significantly involved in preparing the statement in question, it is… read more