Why isn’t it taking a more active stand now?Ī We testified before it became a big part of the debate. Q ICI initially supported some privatization of Social Security. If, in fact, advisers will only pick funds that tell them the religions of the portfolio managers, they’ll have enough juice to get it. Q Why not have the extra disclosure for advisers who want it?Ī The market will drive that. It’s like a gourmet shopper going into Safeway saying I want special labeling on every product, when there may be two gourmet shoppers out of a thousand going into Safeway tomorrow. These advisers have very specialized interests. One issue here is, who is the disclosure for? We have an industry with 66 million shareholders. You’re paying an advisory fee to the management company. If you’re in a fund you’re not paying Matt Fink’s fee. If you’re in General Motors, you are paying the president’s fee. As far as advisers’ and company officers’ pay, why would you care? What you should care about is how the fund has done, how it’s managed, how much it’s charging.
#MATTHEW FINK FULL#
Q Why don’t funds disclose more about the salaries of trustees and advisers?Ī You get full disclosure on what the management company gets. But I think that’s a business relationship. They didn’t give the millionaire a break over the pauper. You don’t discriminate based on the size of the investment. Q Is there any support in the industry for the move by some advisers to get lower fees because they represent a large pool of assets, like institutional clients do?Ī One thing about a mutual fund is the word mutual.
Most studies we’ve seen show if you equalize that, expenses are lower now than 10 or 20 years ago. Now, most funds have either gotten rid of their loads or cut their loads and they put 12(b)1 (marketing-related) fees instead. Twenty years ago - I’m going to make up the numbers for the sake of argument - 80% of the funds had 8% or 6% front-end sales loads and expense ratios of 75 basis points. If you just look at expense ratios you’re only seeing half the story. Third, people get a lot more services today - 24-hour telephone access, regular account statements, a family of funds, etc., that were not known 20 years ago. There’s been a growth in investor interest in more complicated, and therefore more expensive, kinds of funds. Very few people bought international funds, sector funds, more exotic funds. Twenty years ago - I don’t have the numbers here - 90% of people who bought stock funds bought domestic U.S., garden variety, Dow Jones, S&P funds. We may have an advantage now, actually, since a lot of people get fund prospectuses. Competitively I can’t tell you if it would help us or hurt us. There is no federal requirement that 44 million people in 401(k) plans, in 403(b) plans, in Section 457 plans be given anything. The Department of Labor has never required employers to provide basic information about the options offered. You get to the 401(k) market and it gets cut off, because the fund is not dealing with the actual investors it’s dealing with the employer. Why does the mutual fund industry care?Ī We’ve always been huge adherents of full disclosure. Q You’ve been working on getting the 401(k) industry to improve disclosure. Notes one federal official: “Matt just assumes everybody knows who he is and what he does, and he goes right to the jugular.” He graduated from Brown University and Harvard Law School and attended the London School of Economics. He joined the institute in 1971, became general counsel in 1977 and president in 1991. Fink has seen the business through good times and bad. As mutual funds have become the vehicle of choice for 401(k) plans, ICI’s latest push is for greater 401(k) fee disclosure. And earlier this year, his group succeeded in getting the Securities and Exchange Commission to allow simplified prospectuses for would-be investors. His legacy lives on knowing he saved many other lives.The fund industry, represented by the Investment Company Institute in Washington, was a chief beneficiary of the 1996 federal law that banned state regulation of mutual funds. He had a sweet disposition and strong heart. Matthew, was an organ donor and was able to save several other lives by donating many of his vital organs. If anyone wishes to make a memorial donation please make them to support his little furry friends at ASPCA. Matthew loved animals, especially his little dogs they were with him morning noon and night for his entire life.
Matthew was our bright light and will be missed by so many. He loved to be with his friends and was always the life of the party. Matthew had a wonderful glowing smile and deep brown eyes that made you melt away he always lit up the room when he entered. Matt is survived by his Father, Donald M. Matthew was born in Las Vegas at Sunrise Hospital on December 2nd, 1981. MATTHEW FINK Matthew Scott Fink 39, a lifelong resident in Henderson, NV passed away on December 12th, 2020 at St.
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