Splitsville: Why Fund Share Splits Don't Matter

There might be no more annoying and pointless phenomenon in the fund world than the share split, yet it remains a staple trick play in some companies' playbooks.

For example, Monument Funds soon will execute a 3-for-1 share split on its broker sold (MFMAX Quote)Monument Medical Sciences fund and a 2-for-1 share split on its broker-sold (MFTAX Quote)Monument Telecommunications fund, according to company announcements released over the last week. The firm's announcement smacks of a sales pitch -- as if to say, if you missed our fund when it sold at $10 a share, here's your chance to buy there again -- but even a cursory look at the situation proves that this argument is at best weak and at worst misleading.

Here's how it works: On Dec. 15, shareholders of the Medical Sciences fund will receive two additional shares for every one they own at the close of business the night before, and shareholders of the Telecommunications fund will receive one additional share for every share they own. ...