Jason Zweig of the WSJ wrote a column on May 30th titled, "Is Your Fund Pawning Shares Off You?" Jason looked into securities lending by mutual funds and how this affects those funds investors.
Why should you care?
The fund managers can keep as much of the profit from lending YOUR shares as they want. There is NO LEGAL LIMIT.
This represents another drag on your potential investment returns if your fund managers are keeping more than their fair share. There are fund companies mentioned that do not partake in the egregious skimming, the usual suspects.
Read the article or watch the video below and check where you're keeping your money.
