Sec Should Disclose Fund Managers' Incentive Packages, Personal Stakes

The Record, Bergen County, NJ › January 21, 2004

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Summary

Since the Securities and Exchange Commission decided to require disclosure of fund company proxy votes this year, it's time to get down to the good stuff. Proxy disclosure is an entitlement of shareholders, but there are more important things that will directly affect fund investors' bottom lines.

The SEC should get to work on manager-incentive disclosure. Of course, the fund industry could get ahead of this issue so the SEC doesn't have to. For instance, had the Investment Company Institute, the mutual fund industry trade group, come out with its proxy disclosure proposal soon after the Enron debacle, the SEC probably would not have adopted its more comprehensive rules.

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Extract

Sec Should Disclose Fund Managers' Incentive Packages, Personal Stakes

A manager's incentives tell you a lot about how a fund will be run. How so? Managers whose bonuses are tied to 12-month...

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