February 23, 2004
Hi, Thank you for sending me info on the Proposed Mutual Fund Disclosure Forms Im glad to see the SEC taking a bigger interest in Mutual Funds.
One thing I did notice that bugs me is that on your web site and your SEC letters the Eagle Emblem has the eagles head pointing to the Fig branch.Being a ex Army Vet. I know during war time the head needs to point to the Arrows out of respect to those in combat.Anyways you may want to check into it, thats how it used to be.
As far as the forms go I think that they are great they are easy to read and avoid the small print and show the transaction in very good detail.I thought that brokers were already required to disclose the various cost,fees,etc. for a mutual fund.Most funds that Ive bought I have been able to figure the extra cost and the fund companies have shown the cost but not in the detail that your draft forms would show .Im not really sure if the SEC should be forcing Fund companies to follow exactly their forms but youve put together something which should be recommended because they sure would help to avoid confusion.
I think alot of the conflict of interest in Mutual Funds comes after they are purchased.Since alot of people buy M.F. as a long term investment, using IRAs or retirement funds.Whats the time limits on disclosing these costs? Another thing is the inflated gains that they use to get investors to invest can be misleading.It would be nice if they were required to show dates and type of investments which lost money...say they sold soso company for less than they payed for it.They should be required to show when and how much they lost.A investor can learn more from their bad trades/investment than from their gains. Thats just my opinion.
Thank you, Jonathan Katz and Susan Ferris Wyderko your doing a good job.God Bless America,Frank Bauer