Do you eat your own cooking?

Do you eat your own cooking? 

Surprisingly, only about 10% of all mutual funds are run by managers who have invested $1 million or more of their own money in their own funds, according to Morningstar. In fact, 47% of funds don’t have a single dollar of investment from the managers running them.

There are reasons for this. Some portfolio managers don't personally have $1 million dollars to invest in a single strategy. Also, some strategies are niche strategies that don't deserve large allocations of money in an investor's portfolio.

If your portfolio managers (or even much of the staff) invest in your own funds, you are at an advantage. 

Few managers actually invest in their own funds. Even fewer staff members use their own funds as major holding in their firm's retirement plan.

Adding this message to your Website, pitch books and other communications is simple.

Shareholder friendly characteristics such as lower expenses, lower turnover, and tax efficiency align portfolio manager and client interests.