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Politics : Ask Michael Burke -- Ignore unavailable to you. Want to Upgrade?

To: GuinnessGuy who wrote (26311)	3/2/1998 12:03:00 PM
From: Knighty Tin	Respond to of 132070

Craig, That article warms the cockles of a contrarian's heart. It is right on, except it may be understating the problem, especially for mutual funds. With funds, the customers do not keep score quarterly, they look at the price every day. I managed a fund that was priced over $10 most of the time. I used to get lots of irate calls at the end of every month when we went ex-dividend a dime to twenty cents. The fund price, of course, went down by the amount of the distribution. When I explained to shareholders that it went down by an amount we are paying to them, it still didn't satisfy them. Many thought I was pulling something sneaky. -g- The ignorance of the shareholder is amazing, but they all think they know a lot because they read the mags. And most of the mag writers aren't even aware of how a fund really works. Pension money is nasty stuff, because you have to be polite, whereas I prefer to kung-fu somebody who is obnoxious. -g- MB