May 28, 2008

Oppenheimer's Murphy, "Call 12b-1 fees what they are."

We asked OppenheimerFunds chairman and CEO John Murphy for his take on what to expect in 2008. In addition to his role with Oppenheimer, Murphy recently took over as chairman of the Investment Company Institute, the mutual fund lobbying organization. Here's what he had to say:

"We've seen a great deal of attention given to boomer retirement in 2007, and that will continue in 2008. We'd like to see capital gains and dividend rates stay where they are. We believe the Bush tax cuts have helped investors and we believe they should not be repealed. As far as 12b-1 fees are concerned, it will go a long way if we just call them what they are, which are a fee for advice. They give people access to professional services that they could not otherwise afford. I don't think it will help anyone if we completely do away with them."

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