New research by Spectrum Group finds that many mutual fund investors either don't know or don't care about the industry scandals. The largest scandal in the history of the mutual fund industry has escaped the attention of many mutual fund investors and an even larger group of shareholders report feeling unconcerned by their management firms' compliance fiascos. A pair of recent studies by Spectrum Group, an investment consulting firm, reports that more than half of all mutual fund investors were unfazed by the scandals and more than two-fifths of the overall group were unaware that the scandals occurred. The news undoubtedly comes as a relief to mutual fund mutual fund companies that worried about the feasibility of marketing campaigns aimed at restoring investor confidence.
"Mutual fund investors have demonstrated a surprising lack of concern about the scandals that have rocked the industry, and when they do express anxiety, it involves pocketbook issues such as fees and overall return," said Cathrine McBreen, managing director at Spectrum. "While a general lack of knowledge about the issues no doubt contributes to this apathy, the findings do suggest that investors simply don't see a direct connection between the headlines and their own bottom lines." An astonishing one-fifth of the investors surveyed said they didn't care about the scandals. Investors purchasing mutual funds through 401(k) plans were the least concerned about the scandals. Only 37% of the survey group expressed an interest in moving their assets to fund providers that were untouched by the scandals and more than half of the survey group expressed confidence in the industry.