Mutual fund sponsors need to find another way to show their worth to investors than selling their performance, says Morningstar analyst Russell Kinnel.
"The industry can do a better job of explaining how to use funds and what the risks are," Kinnel tells the Wall Street Journal's
Sam Mamudi for Wednesday's Fund Track
column. "They need to do a better job of being stewards and not salesmen."
"The story's been, these are brilliant investors and you should look at all this money that you'd probably make, too [if you were invested in the fund]," he said. "But that's too misleading for a massive industry to be based on."
Mamudi's column is a kick-off to this year's Morningstar advisor conference held through Friday in Chicago. Among the speakers scheduled for the event are: Bill Gross (PIMCO), Jeremy Grantham (GMO LLC), Marty Whitman (Third Avenue Funds), Jack Bogle and John Rogers (Ariel Investments LLC).
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