Hennessy Takes on Bogle
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Tuesday, September 14, 2010

Hennessy Takes on Bogle

Fundsters who don't agree with Jack Bogle's attacks on the mutual fund industry and its fees may want to take a look at a letter to the editors of the Wall Street Journal. Neil Hennessy, chairman, president and CEO of Hennessy Advisors [see profile], yesterday countered a recent WSJ op-ed by Bogle himself (see The MFWire, 8/27/2010). In particular, Hennessy noted various factors contributing to the rise in mutual fund fees.

Neil Hennessy
Hennessy Advisors
Chairman, President and CEO
"While I agree with Mr. Bogle that expenses have gone up, it is absolutely untrue that every manager is lining his or her own pocket with those higher fees," Hennessy wrote, noting the rise of compliance costs and of fund supermarket shelf-space fees. "In case Mr. Bogle hasn't noticed, management fees have not gone up without shareholder approval for as long as I can remember, but all other costs to the shareholder have ... Simply put, costs of running a mutual fund, other than the management fee, are largely outside of the manager's direct control."

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