According to research from Morningstar, expense ratios in open-end mutual funds are showing a downward trend, spurred by the move to index funds as well as lower fees due to break points and savings passed to investors as funds grow.
The result of the surprising departure of Mohamed El-Erian from Pimco, followed by the stunning exit of Bill Gross: the largest outflow by any mutual fund firm in history. The final tally was $150 billion.
In December, Morningstar analysts upgraded three U.S. mutual fund ratings, downgraded five fund ratings and assigned three new ratings. The upgraded funds are:
Alternative funds have grown from $33 billion to $456 billion in the last 10 years, according to Lipper data. But their lack of liquidity may spur new rules from the SEC, as the commission’s chair Mary Jo White noted in a speech last month.
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