At the Investment Company Institute’s Mutual Fund and Investment Management Conference, which was held in mid-March, Dalia Blass, the SEC’s Division of Investment Management, noted in her keynote speech that the regulator is concerned that competitive pressures are eliminating small fund families from the industry. As a result, the SEC is going to research whether barriers exist in the industry that prevents small fund families from competing against the largest players.
On April 5, 2018, the New York Office of the Attorney General (NYAG) announced that it had completed an investigation into 14 large fund families, including some of the largest asset management firms in the world. The NYAG’s list included BlackRock, Goldman Sachs Asset Management, JP Morgan & Chase, Oppenheimer, The Vanguard Group, and others. According to the NYAG’s report, it was investigating the relationship between mutual fund fees and disclosure, specifically, the disclosure of the Active Share metric to retail investors. The NYAG concluded that: