Barron’s Publishes Epstein Op-Ed on Need for Mutual Fund Shareholder Advocates


    The current (August 27, 2011) issue of Barron’s has published my op-ed,”Why the Fund Industry Needs Shareholder Advocates” in its “Other Voices” section, page 45.

    Where are the shareholder's advocates?

    The op-ed cites the need for fund companies to more aggressivly demonstrate they are acting in their own customers’ best interests. 

    While this may seem an obvious thing to do, the fund industry in general is governed by a sales mentality, which puts the needs of fund wholesalers and other sales-support poeple before those of the fund company’s own shareholders. 

    As a result, those load-fund companies, which are primarily sales organizations, do not have the same goals as their own customers. 

    This diminishes a fund company’s assumed goal of doing what is in the best interests of shareholders and helps explain the conflict-of-interest argument which is a key element of the discussion on the need to adopt a fiduciary standard.

    In short, the essay makes the case that good corporate governance is good marketing and vice versa. It is also cost effective and does not require a large expansion of the marketing budget.  If anything, the opposite would be true over time.

    Or, as the editors of Barron’s said: “Mutual fund companies need to convince the public that they operate in their clients’ best interests. Appointing shareholder advocates—and listening to them—would be a step in the right direction.”

    For the specifics, see this week’s Barron’s “Other Voices” column by Chuck Epstein.

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    Chuck Epstein has managed marketing communications and public relations departments for major global financial institutions and participated in the launch of industry-changing financial products. He also has written by-lined articles for over 50 publications, five books and served as editor and publisher of nation’s first newsletter on the topic of using the PC for personal investing and trading. (“Investing Online, 1994-1999). He also is a marketing consultant, writer and speaker on topics related to investor protection and opportunities in the very dynamic cannabis industry. He has held senior-level marketing, PR and communications positions at the New York Futures Exchange, Chicago Mercantile Exchange, Lind-Waldock, Zacks Investment Research, Russell Investments and Principal Financial. He has won national awards from the Mutual Fund Education Alliance (MFEA) and his web site,, was named best small blog in 2009 by the Society of American Business Editors and Writers (SABEW).


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