Supreme Court to Decide on Mutual Fund Fees
Shareholders are suing Harris Associates LP’s Oakmark mutual funds saying fees on three funds: Oakmark, Oakmark Equity and Income and Oakmark Global, are in percentage terms more than twice what Harris charges pension funds and other independent clients. For the Oakmark Fund, Harris charged 0.88 percent during the 12 months before the suit was filed in August 2004, court documents show. For every 1 percent charged in fees to a mutual fund, an investor will lose approximately 28 percent of the total value of that person’s portfolio over a 35-year period. That is a significant amount of America’s retirement savings that are potentially at issue where retail mutual funds charge excessive fees. See a recent FOX news video on the topic below.