Data on the profitability of mutual fund companies is sorely lacking, making it difficult for board members to assess whether their fund companies’ profits are in line with industry standards, The Wall Street Journal reports. Directors must consider such factors when deciding whether to renew an investment advisory contract.

The Securities and Exchange Commission has made such periodic reviews a new requirement of independent fund boards.

PricewaterhouseCoopers recently surveyed 100 mutual fund executives, 86 of whom served on the board, about assessing their investment advisor. One third said they found it difficult to do so.

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