Once again, Jack Bogle, the disenfranchised founder of
As a participant in a panel sponsored on Monday by
In theory, 12b-1 fees should be inversely proportionate to a funds size. Larger funds theoretically require fewer marketing expenses. But the actual practice has been just the opposite.
Bogle threw the gauntlet at the panel by suggesting fund management groups have grown fat on 12b-1 inflows that have dampened investors returns. Bogle advocates abolishing the fees, which, he says, are sometimes buried in prospectuses accompanying no-load mutual funds.
