Americans who own U.S. stock mutual funds are paying about 6 percent less in annual management fees than they did before New York Attorney General Eliot Spitzer began his assault on industrywide trading abuses.
Today, holders of actively run U.S. stock funds overseen by the 100 biggest fund companies pay an average of $9.80 for every $1,000 invested, down from $10.40 two years ago, according to data compiled by Chicago- based Morningstar Inc.
The reduction, which amounts to about $1.5 billion of savings, followed Spitzer’s 2003 probe and an investor migration to funds managed by firms including Los Angeles-based Capital Group Cos.’ American Funds and Vanguard Group of Valley Forge, Pa.
“The whole world is listening thanks in very large part to Eliot Spitzer, who deserves some sort of medal of honor from the mutual-fund investor,” said John Bogle, 76, Vanguard’s founder and a longtime critic of the fees that companies charge.
