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Johnsen on Mutual Fund Fees

 In a DailyFinance article on mutual fund fees, Professor D. Bruce Johnsen explains the conclusions of his recent study, "Myths About Mutual Fund Fees: Economic Insights on Jones v. Harris."

"Lower advisory fees don't necessarily benefit investors," says Johnsen. "Don't believe the bad press about high advisory fees. It's a misconception that fund fees necessarily reduce invester returns dollar for dollar, and that lower fees therefore benefit investors." Higher prices can indicate higher quality in many cases, says Johnsen.

On November 3 the U.S. Supreme Court heard arguments in Jones v. Harris Associates, in which  the Court reveiwed allegations that classes of investors paid different fees for management of identical portfolios.

Mutual fund fees fight may be much ado about nothing, DailyFinance, November 5, 2009. By Sheryl Nance-Nash.

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