Skip to Content
Fund Spy

Do Managers of 50 Top Funds Buy What They're Selling?

When it comes to their own funds, some managers invest millions and others invest bupkis.

Mentioned: , , , , , , , , ,

One of the best data points on mutual funds is manager ownership of fund shares. Fund companies have to report to the SEC annually how much managers have invested in their funds.

The report is in the pithily named Statement of Additional Information, or form 485bpos. There, the manager's investments are published in ranges with a maximum level of more than $1 million. That maximum level is too low, as many managers earn in the $5 million to $20 million range, but it's still helpful in understanding which managers really believe in their funds.

Fully 4,347 funds out of about 6,557 have at least one manager who isn't investing in the fund. And of the 1,126 funds where there is just one manager, there is no manager ownership. On the plus side, 564 funds have at least one manager with more than $1 million at stake in the fund they run.

To view this article, become a Morningstar Basic member.

Register for Free

Russel Kinnel has a position in the following securities mentioned above: PTTRX. Find out about Morningstar’s editorial policies.