Fee Blindness Can be Expensive for Plan Participants

The Wall Street Journal's Jason Zweig reports that half of pension plans, endowments, fundations and other institutions had no plan to review the fees taht they pay to outside money managers, and that many never review fees. Read more here.

From the article: "In the mad dash to buy bond funds -- about $200 billion so far this year -- investors are overlooking fees. Most of the new bond money is going not into dirt-cheap index funds, but into far more expensive, actively managed portfolios."

See also the video interview discussing the need to monitor and evaluate fees.

"A new study shows even sophisticated investors don't pay attention to fees and with the Dow reaching above 10000, WSJ's Personal Finance columnist Jason Zweig says, now more than ever, people are blinded to them. He speaks with Kelsey Hubbard.
.The average annual cost of owning a taxable bond fund, according to Morningstar, is 1.03% of invested assets, with a maximum of 2.98%. In a world of 3% to 4% Treasury yields, with the risk of losses if interest rates rise, those fees loom large."