Mutual Fund Advisory Fees: From Gartenberg to Jones

22 Pages Posted: 3 May 2021 Last revised: 28 Jun 2021

See all articles by Stewart L. Brown

Stewart L. Brown

Florida State University - Department of Finance

Date Written: April 22, 2021

Abstract

The paper surveys three important mutual fund advisory fee cases that defined the 36(b)-litigation landscape between Gartenberg v. Merrill Lynch and Jones v. Harris. It also provides a simple and clear example of economies of scale in the mutual fund advisory function and discusses how an equitable sharing of economies of scale with fund investors may be accomplished. Finally, the paper argues against the proposition the mutual fund advisory fees are subject to the forces of arm’s length bargaining.

Keywords: Mutual Funds

JEL Classification: G23

Suggested Citation

Brown, Stewart L., Mutual Fund Advisory Fees: From Gartenberg to Jones (April 22, 2021). Available at SSRN: https://ssrn.com/abstract=3832369 or http://dx.doi.org/10.2139/ssrn.3832369

Stewart L. Brown (Contact Author)

Florida State University - Department of Finance ( email )

Tallahassee, FL 32310
United States
(850) 576-6329 (Phone)
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