In evaluating the new disclosures required of mutual funds, it’s wise to ask these questions:
Portfolio holdings. Is the portfolio manager adhering to the stated objective?
Risk measures. Are they from an independent source? Do they allow you to compare the risk in funds from other families?
Value of fund shares held by portfolio managers, trustees, and fund company executives. Who has “skin in the game”?
Portfolio manager compensation structure. Are the managers’ interests aligned with those of shareholders over a timeframe appropriate to your client?