February 17, 2004
Dear Ms. Syderko:
Thank you for your letter requesting my comments. The sample pages you sent were a bit confusing at first, but I was able to surmise the info a lot easier than that long legal document, the prospectus, which mutual funds send.
To simplify the process: why not require the funds to state a historical figure of their gains and losses--after deducting all fees and expenses. Failing to do this can allow funds to promote themselves as being profitable when they are not. For example: I had 8,000.00 in a Legg Mason IRA for five years. They posted gains each year according to Morningstar reports--but when I rolled the money over to T. Rowe Price, there was actually a 3 percent loss--due to all the hidden expenses.