Given the awful performance that some mutual fund companies have doled out over the past few year, it's high time investors got a decent present from the fund industry this holiday season. I recently came up with my own wish list for the fund business -- some practical and fantastical ideas the industry could use to win back the confidence of investors. And readers responded with plenty of their own suggestions. Jonathan Leitner sent in three wishes that he has for the mutual fund business. "One: I want to know how much did my fund manager make this year? While this information is somewhat public, it should go right into the prospectus. The investor should see exactly how much they are paying the fund manager for their performance." Shareholders can do a rough calculation to figure out how much a fund company is making in management fees from a fund every year. Just take the assets in the fund and multiply by the management fee, which is part of the expense ratio and broken out in a fund's prospectus. That calculation won't give you an exact dollar amount -- because the assets change over the course of a year. But it will give you a good approximation of how much money the advisor took in.
Need the Info
Nevertheless, there's no way of knowing what the actual manager gets paid. If fund companies won't disclose that tidbit of information, then how about printing the manager's home address? That way, you could at least drive by the guy's house to see how big it is. Or egg it if you're really angry about a fund's performance. Jonathan also wants to know more about what a fund is holding. "Mutual funds file a bunch of nonsense twice a year. Investors buy all the time. Any information you read is so outdated, it's useless. There should be timely quarterly reporting and statements filed when funds materially change their portfolios. Disclosing a mutual fund's holdings does not give away its strategy. It lets you know whether or not you want to be in the fund."