Chicago Kent University professor William Birdthistle says the Jones v. Harris case will mark a very important decision in a very important part of the American economy.
Ryan Leggio: Hi, I'm Ryan Leggio. I'm a mutual fund analyst here at Morningstar. The Supreme Court is set to hear oral arguments in Jones v. Harris. Harris is the investment advisor to the Oakmark fund family.
We thought it would be a good idea to pull in two of the industry's leading experts on mutual fund fees to get a better idea of what this Supreme Court case means to mutual fund investors.
Joining me here in the studio is William Birdthistle, professor of law at Chicago Kent University. And joining us from Cambridge is Professor Coates from Harvard University.
Professors, thank you so much for joining us today.
William Birdthistle: Thank you Ryan.
John Coates: Thank you.
Leggio: Professor Birdthistle, why is this Supreme Court case so important for investors?
Birdthistle: Ryan, the case is important because it is an enormous case. It involves 93 million Americans, that's almost half of all households, investing $10 trillion in mutual funds. And every year, the investment advisory industry brings home $100 billion in fees.
So the sheer magnitude of the case is enormous, especially when you consider the fact that the Supreme Court rarely hears these cases. So we're going to get, one way or the other, a very important decision in a very important part of the American economy.
