Jim Scheinberg was quoted today in an article by Daily Finance, an AOL money & finance site, entitled “Target-Date Funds: Hidden Risks in ‘Simple’ Plans.”
The propensity of these funds toward investing in only their firm’s proprietary products is problematic for Rekenthaler, as well as others, such as Jim Scheinberg, managing partner of North Pier Fiduciary Management, “Most target-date funds invest in the asset management firm’s own offerings. Seldom, if ever, will one company have superior choices for each asset class,” says Scheinberg.
Jim Scheinberg was quoted today in an article by Daily Finance, an AOL money & finance site, entitled “Mutual Fund Fees Debate: Much Ado About Nothing?”
Some would argue that international, emerging market and other specialty-sector funds require more in depth research and therefore should be more expensive. “You have to pay for talent,” says Jim Scheinberg, managing partner of North Pier Fiduciary Management. A manager’s prowess could be linked to the resources they expend, thus impacting their costs and net fee. For example, if one small-cap manager has three analysts for a $500 million portfolio and one manager has 10 for the same sized portfolio, the second manager’s costs, and the resultant fees, are going to be higher; but in theory, their coverage of their market should be better. “Would this justify a higher fee? If their performance was stronger, we think so,” says Scheinberg.