Chapter 16: Identifying Mutual Fund Stewardship

Haslem, John A.

Chapter 16: Identifying Mutual Fund Stewardship

John A.Haslem, ed., Mutual Funds: Portfolio Structures, Analysis, Management, and Stewardship, pp. 305-317. Hoboken, NJ: John Wiley & Sons, 2010

17 Pages Posted: 6 Jan 2015 Last revised: 9 Dec 2018

See all articles by John A. Haslem

John A. Haslem

University of Maryland - Robert H. Smith School of Business; University of Maryland - Robert H. Smith School of Business

There are 2 versions of this paper

Date Written: May 17, 2015

Abstract

The revelations of major scandals in the mutual funds industry brought intense feelings of betrayal and financial loss to millions of fund shareholders whose assets were improperly and illegally appropriated. Shareholders need and deserve much greater protection and transparency of normative disclosure that meets their normative shareholder needs.

Investors need guidance in identifying stewardship funds that (it is hoped) will remain so. Through application of five dimensions of analysis, investors are able to make an overall identification of stewardship funds. These dimensions are (1) return, risk and risk/return performance, (2) diversification risk, (3) management and culture, (4) Morningstar’s Stewardship Grades, and (5) Bogle’s Stewardship Quotient. The fund scandal has shown the identification of stewardship funds to be essential now, and in the future, to sound investing.

Keywords: mutual fund scandals, transparency of normative disclosure, identification of stewardship funds, stewardship quotient, M* stewardship grades

JEL Classification: G2,G23, G28

Suggested Citation: Suggested Citation

Haslem, John A. and Haslem, John A., Chapter 16: Identifying Mutual Fund Stewardship (May 17, 2015). John A.Haslem, ed., Mutual Funds: Portfolio Structures, Analysis, Management, and Stewardship, pp. 305-317. Hoboken, NJ: John Wiley & Sons, 2010, Available at SSRN: https://ssrn.com/abstract=2545074