Excessive Mutual Fund Expenses: Not the Complete Story

2005 ◽  
Author(s):  
John A. Haslem ◽  
David M. Smith ◽  
H. Kent Baker
Keyword(s):  
Mutual Fund ◽  
Mutual Fund Expenses ◽  
Complete Story

AN EMPIRICAL ANALYSIS OF MUTUAL FUND EXPENSES

1997 ◽  
Vol 20 (2) ◽  
pp. 175-190 ◽  
Author(s):  
D. K. Malhotra ◽  
Robert W. McLeod
Keyword(s):  
Empirical Analysis ◽  
Mutual Fund ◽  
Mutual Fund Expenses

Should Investors Care About Mutual Fund Governance Quality?: Evidence From Morningstar Stewardship Ratings

2018 ◽  
Keyword(s):  
Mutual Fund ◽  
Structure Type ◽  
Fund Performance ◽  
Mutual Fund Performance ◽  
Managerial Incentive ◽  
Quality Rating ◽  
Governance Quality ◽  
Fund Governance ◽  
Mutual Fund Expenses ◽  
Quality Evidence

This article uses Morningstar Governance Ratings (MGRs) to analyze mutual fund expenses and create an indirect proxy for mutual fund performance. The results differ across ratings type and fund structure. In general, multiple share class (MS) funds do not have lower expenses, which is surprising since MS funds were created explicitly to have lower expenses. Additionally, MGRs impact expenses differently for each fund structure type: a higher board quality rating is only correlated with lower expense ratios for MS funds, while higher managerial incentive ratings are correlated with higher expenses for Non-MS funds and lower expenses for MS funds. When considering that a main impetus for creating MS funds is to lower investor expenses, it is of interest that only funds with higher stewardship ratings seemingly have lower expenses.

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