The Investment Company Institute, the trade association for the $6.8 trillion-dollar fund industry, is little better than lobbyists for the gun, tobacco and alcohol industries, an article in Forbes charges.
Most fund companies pay their ICI dues out of investors fund fees only to have the ICI lobby against strengthening investor rights, according to Forbes. And even though the ICI purports to represent both fund companies and investors equally, 42 of its 48 directors are industry insiders, and the remaining six are fund independent directors, whose impartiality is questionable.
"The ICI oppose[s] virtually every pro-investor initiative to come out of the SEC or Congress," Forbes says. The ICI has lobbied against after-tax performance, disclosing fees in dollars and revealing proxy votes.
In response, ICI spokesman John Collins told MME: "We sent a letter to the editor pointing out the reporter had used facts quite selectively, and the result of doing so was to portray the fund industry in a grossly disfigured way that is neither justified by the facts presented or the facts that exist."