Posted by on Sep 3, 2018 in Articles & Advice, Blog, Columns, Featured |

Image Credit: Alex Nabaum


By Jason Zweig |  Aug. 31, 2018 12:01 p.m. ET


Mutual funds made one hot mess out of August.

On Aug. 10, Fidelity Investments conducted stock splits on some of its biggest funds, cutting their per-share prices by a factor of 10 while giving investors 10 times as many shares — a gesture that leaves shareholders exactly where they were before. On Aug. 22, Harbor Capital Advisors, which runs the $20 billion Harbor International Fund, announced it would pay out between 35% and 42% of the fund’s net asset value as capital gains — handing many of its investors a giant tax bill. And on Aug. 27, the Securities and Exchange Commission imposed $98 million in sanctions on several firms involved in the Transamerica Tactical Income Fund, alleging that they didn’t properly test that the fund’s strategy would work before launching it….

To read the rest of the column:



For further reading:


Benjamin Graham, The Intelligent Investor

Jason Zweig, The Devil’s Financial Dictionary

Jason Zweig, Your Money and Your Brain

Jason Zweig, The Little Book of Safe Money



Articles and other research:

SEC order in the Transamerica case

Jeffrey Ptak, “Another Lesson on Why Taxable Money in Active Stocks is a Bad Idea” (Morningstar)

Paul Sonkin and Paul Johnson, “Quant Fund Managed by a Recent MBA…” (Pitch the Perfect Investment blog)

How Funds Can Do Better

Mutual Fund Tax Bombs

Look Back and Learn: A History of Mutual Funds

Mutual Funds and Mr. Creosote

Why Do Mutual Funds Cost So Much?

Splits: Why You Should Ignore a Stock’s Price