Does Your Fund Meet Its Fiduciary Responsibilities?
Every mutual fund family talks the talk about meeting the fiduciary responsibilities of its investors, but the current scandal shows that not all families walk the walk. For all the investors who want to know where their fund firms rank, now there's a way.
Fiduciary Analytics, a Pittsburgh-based organization that provides fiduciary training and research to pension plan sponsors and investment advisers, released its first Mutual Fund Family Fiduciary Rankings on Tuesday -- ranking 255 firms from first to worst.
Don Trone, founder and president of Fiduciary Analytics, said the firm conducted the extensive study due to the groundswell of investors and retirement-plan fiduciaries asking what to do with funds from families implicated in the scandal. "Not surprisingly, the funds that have been implicated didn't rank very well," Trone said.
Vanguard and T. Rowe Price (TROW) did the best among the big fund families, ranking No. 8 and No. 20. The study measured individual funds according to eight due-diligence screens -- including performance, manager tenure and expenses -- and ranked funds within their peer group as "passed," "acceptable," "watch" or "replace." Fiduciary Analytics then ranked the fund families based on the percentage of their funds that merited either "passed" or "acceptable," the top two categories. Of Vanguard's 100 funds, 85% were in the "passed/acceptable" camps, while 71% of T. Rowe Price's 83 funds made the cut."[Vanguard founder John] Bogle always talks about meeting the fiduciary responsibilities of Vanguard's investors, and this ranking is a vindication," Trone said. Also turning up among the top 50 were American Funds Group (No. 31, with 62% of its funds making the top two categories) and Fidelity (No. 48, with 50% of its funds making the cut). Scandal-tainted shops didn't fare so well. Janus (JNS) had a mere 30% of its 43 funds making the "passed" or "acceptable" grades, which nonetheless was good enough to rank it as No. 103 out of 255. Putnam ranked No. 137, with 23% of its funds landing in the top two categories, while Alliance Capital's (AC) Alliance Bernstein funds ranked No. 178, with 18% of the funds making the cut.
Select the service that is right for you!COMPARE ALL SERVICES
Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.
- $2.5+ million portfolio
- Large-cap and dividend focus
- Intraday trade alerts from Cramer
- Weekly roundups
Access the tool that DOMINATES the Russell 2000 and the S&P 500.
- Buy, hold, or sell recommendations for over 4,300 stocks
- Unlimited research reports on your favorite stocks
- A custom stock screener
- Upgrade/downgrade alerts
Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.
- Diversified model portfolio of dividend stocks
- Alerts when market news affect the portfolio
- Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.
- Real Money + Doug Kass Plus 15 more Wall Street Pros
- Intraday commentary & news
- Ultra-actionable trading ideas
Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.
- 100+ monthly options trading ideas
- Actionable options commentary & news
- Real-time trading community
- Options TV