Spitzer and State Authorities Unveil Mutual Fund Proposals

by Philip Morton, Investors Offshore.com

19 January 2004

New York attorney general, Eliot Spitzer, in conjunction with California treasurer, Phil Angelides, New York comptroller, Alan Hevesi, and North Carolina treasurer, Richard Moore on Thursday unveiled proposals designed to increase transparency for mutual fund investors.

Between them, the three state officials control more than $400 billion in pension assets, a fact which led Mr Spitzer to observe that: "These guys have the trump card."

Speaking at the Manhattan news conference, Mr Moore explained that:

"We are not acting as regulators. We are solely acting as large participants who are going to demand a higher level of service if you want our business."

He went on to reveal that the proposals will call upon mutual funds to disclose their fees, trading costs, and the compensation levels of their fund managers.

Although the changes would be voluntary, the state officials revealed that they would be trying to recruit other pension funds and large institutional investors to support their cause.

Recommended