Mutual Fund Agency Conflicts
Journal of Index Investing, Vol. 3, No. 2, pp.12-22, Fall 2012
10 Pages Posted: 8 Sep 2012 Last revised: 27 Mar 2017
There are 2 versions of this paper
Mutual Fund Agency Conflicts
Date Written: September 8, 2012
Abstract
The purpose of this study is to discuss various types of agency conflicts that negatively impact mutual fund shareholder interests. In so doing, shareholders should get an improved understanding of conflicts that place them at such a disadvantage in fund investing. Many fund advisers are motivated to use each available agency conflict to their advantage. But, even if not, conflicts in the Investment Company Act of 1940, adverse court decisions, and the 2003 fund scandal have done quite enough harm to shareholders. Several major findings of fund agency conflicts with shareholders are discussed.
Keywords: mutual funds, agency conflicts, shareholder interests, ICA, court decisions, fund scandal
JEL Classification: G2, G23, G28
Suggested Citation: Suggested Citation