CFTC Investigates Managed Futures Fees
- December 27, 2013
- The Frankowski Firm
In October 2013, Bloomberg.com published an article titled “How Investors Lose 89 Percent of Gains from Futures Funds”. The article examined the disconcerting disparity between fees charged and the return for investors, stating, “According to data filed with the U.S. Securities and Exchange Commission and compiled by Bloomberg, 89 percent of the $11.51 billion of gains in 63 managed-futures funds went to fees, commissions and expenses during the decade from Jan. 1, 2003, to Dec. 31, 2012.” After publication of the Bloomberg.com article, the Commodity Futures Trading Commission opened an investigation into the high fees associated with futures funds. According to a recent Bloomberg.com article titled CFTC Opens Probe Into Fees Charged by Managed Futures Funds, Bart Chilton of the CFTC wants more transparency when it comes to the long term effect of fees on investors. There is a great concern over the impact these large fees have on investors’ retirement security. According to the article, the investigation, which was announced mid December, is going forward with support from the Senate. If you or someone you know has lost money as a result of an investment, please contact Richard Frankowski at 205-747-1903 to discuss your potential legal remedies.