The 12th annual Lump of Coal Awards are under way, finger-pointing at the bad boys and girls within the exchange traded fund (ETF) and mutual fund community. These awards recognize managers, executives, firm watchdogs, and other fund-world participants for action, attitude, behavior or performance that is misguided, bumbling, offensive, or plain stupid, reports Chuck Jaffe for MarketWatch.
- SEC Chairman Christopher Cox for failing to walk the talk. He has talked like the champion of the consumer and nothing has come to pass, especially when it comes to 12b-1 fees.
- Putnam’s Ready Retirement Funds for failing to be ready. Their mixed-asset target-date fund for 2010 is last in year-to-date performance. Their other target-date funds are down their with the 2010.
- The Critical Math Fund failing mutual fund arithmetic. Someone forgot costs can affect returns, which are critical for the shareholders.
- Monetta Young Investor giving investors funds with that happy meal. Offered in July, anyone who opened an account got a free happy meal with a $250 minimum investment. Performance has lagged, making that one expensive happy meal.
- Directors of Franklin Real Estate Securities Fund inability to recognize a bad fund when they see it. How can directors find reoccurring poor performance acceptable?
- Investors in Franklin Real Estate Investments failure to get out of a continually poor performing investment.
- Management of the Reserves and Hallmark Funds messing up the easy stuff and leaving shareholders to foot the clean-up bill. Collecting fees its not entitled to and then charging higher fees, just doesn’t add up.
- Director of Phoenix Market Neutral Liking junk management but hating junk mail.
- Securities and Exchange Commission failing to fight the good fight. A small slap on the wrist doesn’t send out a strong warning message.
- Bill Miller, Manager Legg Mason Value Trust ugly performance when his good thing came to an end.
The opinions and forecasts expressed herein are solely those of Tom Lydon, and may not actually come to pass. Information on this site should not be used or construed as an offer to sell, a solicitation of an offer to buy, or a recommendation for any product.