More fund companies are going to be entangled in the investigation into kickbacks from fund administrators to mutual fund companies, MarketWatch columnist Chuck Jaffe predicts. This will rile the investing public further and tarnish more reputations, he says.
“When it becomes clear that this was a more widespread practice, investors may figure out that the real problem is that asset managers were the ones requesting the paybacks, effectively telling the service providers to skin shareholders,” he writes.
As if that isn’t bad enough, the acceptance of gifts will create yet another wrinkle to the mutual fund scandal. Taking the recent $42 million cue from
Other predictions: performance advertising, an actively managed exchange-traded fund, the sale of yet another big ETF provider to a traditional asset manager and renewed debate on dollar-based fee disclosure.
