Fund managers' performance
by Arthur Merrill, C.M.T.
Should we monitor the actions of mutual fund managers? They are paid a salary to do a better job of
investing than the common man. While some managers may not live up to expectations, on the average,
they should be labeled "smart money."
The Investment Company Institute, which represents more than 90% of the funds, reports monthly. You
can subscribe to their detailed report or note the "Mutual fund monthly indicators" summary in Barron's
Index of Statistics. The indicators I will discuss in this article are derived from seven figures:
1.Purchases of common stocks
2.Sales of common stocks
5.Cash and short-term (S/T) holdings
6.Assets of stock funds
7.Assets of bond and income funds