Mutual Fund Expense Disclosures: A Behavioral Perspective

Mutual funds have enjoyed phenomenal growth with their numbers exceeding the number of public companies and their assets aggregating in excess of $9 trillion. Increasingly they are the investment instrument of choice by the proverbial widows, widowers and orphans, and a few school teachers are included as well. But how are best can that choice be one that is not only informed but informed in a way more likely to elicit a wise decision? This paper examines from a behavioral perspective how regulation can best disclose information related to two key factors for investors to compare competing mutual funds: fund returns and fund expenses. Our analysis reflects that the current disclosure process is deficient because it fails to reflect the insights of research on judgment and decision making, and particularly the need to distinguish between the availability of information and its processability by its user. The message of our article is straightforward: if regulators adhered to the insights provided by our paper, not only investors, but also the fund\u27s directors, would be greatly empowered so that better returns and lower costs could be expected

Variable-camber systems integration and operational performance of the AFTI/F-111 mission adaptive wing

The advanced fighter technology integration, the AFTI/F-111 aircraft, is a preproduction F-111A testbed research airplane that was fitted with a smooth variable-camber mission adaptive wing. The camber was positioned and controlled by flexing the upper skins through rotary actuators and linkages driven by power drive units. The wing camber and control system are described. The measured servoactuator frequency responses are presented along with analytical predictions derived from the integrated characteristics of the control elements. A mission adaptive wing system chronology is used to illustrate and assess the reliability and dependability of the servoactuator system during 1524 hours of ground tests and 145 hours of flight testing

Mutual Fund Expense Disclosures: A Behavioral Perspective

The last few years have not been kind to the mutual fund industry. To be sure, financial indices have improved with the collateral benefit of boosting investor optimism so that the net gain in assets under management by registered investment companies rose by more than ten percent in 2004 to reach $8.6 trillion at the end of the year. But the mutual fund scandals that were first unearthed in fall 2003, with the accusations of late trading involving the Canary Fund, have been compounded by further allegations of late trading involving other funds. These scandals have been joined by pervasive instances of fund advisors looking the other way as important clients were permitted to abuse fund prohibitions against rapid trading. Even the well-established practice of revenue sharing, whereby brokers are rewarded by funds for recommending the fund to their clients, are being reconsidered in the post-Enron era in light of rising concerns over pervasive conflicts of interest within the financial services industry. For example, revenue sharing is now regulated. The various mutual fund scandals have invited public and political focus on the rising level of fees and expenses levied upon funds by their advisors. Thus, 2004 found not only numerous government enforcement actions that resulted in significant financial settlements, but also a tectonic shift in the regulatory quilt that covers the mutual fund industry. Foremost among the regulatory developments for the mutual fund industry is the requirement of heightened transparency of how registered investment companies cast their proxies for their portfolio companies. Greater transparency regarding how funds vote complicates the life of the fund manager by placing the manager between the conflicting needs of gaining admission as one of the acceptable vendors of 401K plans for a portfolio company’s employees and confronting a shareholder-friendly proposal (e.g., separating the position of CEO and board chair) that is opposed by that portfolio company’s management. The SEC also adopted corporate governance changes that essentially compel most funds to raise the number of fund directors who are independent of the fund’s advisor to three-fourths (from the statutorily mandated level of forty percent). And, as will be discussed, in 2004 the SEC expanded the amount of information that funds must disclose regarding fees and other costs that are charged to the fund’s assets. This articles concludes that any reporting of expenses should be placed in a context that invites easy comparisons by investors. The proposal l is not that there should necessarily be more information disclosed to mutual fund investors, but that much more attention should be given to the cognitive processes investors can be expected to employ in their response to the disclosures that are made

Newly-Discovered Planets Orbiting HD~5319, HD~11506, HD~75784 and HD~10442 from the N2K Consortium

Initially designed to discover short-period planets, the N2K campaign has since evolved to discover new worlds at large separations from their host stars. Detecting such worlds will help determine the giant planet occurrence at semi-major axes beyond the ice line, where gas giants are thought to mostly form. Here we report four newly-discovered gas giant planets (with minimum masses ranging from 0.4 to 2.1 MJup) orbiting stars monitored as part of the N2K program. Two of these planets orbit stars already known to host planets: HD 5319 and HD 11506. The remaining discoveries reside in previously-unknown planetary systems: HD 10442 and HD 75784. The refined orbital period of the inner planet orbiting HD 5319 is 641 days. The newly-discovered outer planet orbits in 886 days. The large masses combined with the proximity to a 4:3 mean motion resonance make this system a challenge to explain with current formation and migration theories. HD 11506 has one confirmed planet, and here we confirm a second. The outer planet has an orbital period of 1627.5 days, and the newly-discovered inner planet orbits in 223.6 days. A planet has also been discovered orbiting HD 75784 with an orbital period of 341.7 days. There is evidence for a longer period signal; however, several more years of observations are needed to put tight constraints on the Keplerian parameters for the outer planet. Lastly, an additional planet has been detected orbiting HD 10442 with a period of 1043 days.Comment: Accepted for publication in Ap

Interleukin-4 in the Generation of the AERD Phenotype: Implications for Molecular Mechanisms Driving Therapeutic Benefit of Aspirin Desensitization

Aspirin-exacerbated respiratory disease (AERD) is explained in part by over-expression of 5-lipoxygenase, leukotriene C4 synthase (LTC4S) and the cysteinyl leukotriene (CysLT) receptors (CysLT1 and 2), resulting in constitutive over-production of CysLTs and the hyperresponsiveness to CysLTs that occurs with aspirin ingestion. Increased levels of IL-4 have been found in the sinus mucosa and nasal polyps of AERD subjects. Previous studies demonstrated that IL-4 is primarily responsible for the upregulation of LTC4S by mast cells and the upregulation of CysLT1 and 2 receptors on many immune cell types. Prostaglandin E2 (PGE2) acts to prevent CysLT secretion by inhibiting mast cell and eosinophil activation. PGE2 concentrations are reduced in AERD reflecting diminished expression of cyclooxygenase (COX)-2. IL-4 can inhibit basal and stimulated expression of COX-2 and microsomal PGE synthase 1 leading to decreased capacity for PGE2 secretion. Thus, IL-4 plays an important pathogenic role in generating the phenotype of AERD. This review will examine the evidence supporting this hypothesis and describe a model of how aspirin desensitization provides therapeutic benefit for AERD patients

Peptide uptake in germinating barley embryos involves a dithiol-dependent transport protein

AbstractAn active transport system for small peptides occurs in the scutellar membrane of germinating barley and serves to move the products of partial hydrolysis of storage proteins from the endosperm into the growing embryo. Transport of peptides, but not amino acids or glucose, is inhibited by the thiol reagents, N-ethylmaleimide and p-chloromercuribenzene sulphonic acid (PCMBS). Peptide substrates protect against PCMBS inactivation. The dithiol-specific reagent, phenylarsine oxide (PAO) also inhibits. The reducing agent, dithiothreitol, reverses the inactivation caused by PCMBS and PAO. We conclude that the peptide transport system contains a redox-sensitive, dithiol-dependent protein

Infarct size and left ventricular remodelling after preventive percutaneous coronary intervention

Objective: We hypothesised that, compared with culprit-only primary percutaneous coronary intervention (PCI), additional preventive PCI in selected patients with ST-elevation myocardial infarction with multivessel disease would not be associated with iatrogenic myocardial infarction, and would be associated with reductions in left ventricular (LV) volumes in the longer term. Methods: In the preventive angioplasty in myocardial infarction trial (PRAMI; ISRCTN73028481), cardiac magnetic resonance (CMR) was prespecified in two centres and performed (median, IQR) 3 (1, 5) and 209 (189, 957) days after primary PCI. Results: From 219 enrolled patients in two sites, 84% underwent CMR. 42 (50%) were randomised to culprit-artery-only PCI and 42 (50%) were randomised to preventive PCI. Follow-up CMR scans were available in 72 (86%) patients. There were two (4.8%) cases of procedure-related myocardial infarction in the preventive PCI group. The culprit-artery-only group had a higher proportion of anterior myocardial infarctions (MIs) (55% vs 24%). Infarct sizes (% LV mass) at baseline and follow-up were similar. At follow-up, there was no difference in LV ejection fraction (%, median (IQR), (culprit-artery-only PCI vs preventive PCI) 51.7 (42.9, 60.2) vs 54.4 (49.3, 62.8), p=0.23), LV end-diastolic volume (mL/m2, 69.3 (59.4, 79.9) vs 66.1 (54.7, 73.7), p=0.48) and LV end-systolic volume (mL/m2, 31.8 (24.4, 43.0) vs 30.7 (23.0, 36.3), p=0.20). Non-culprit angiographic lesions had low-risk Syntax scores and 47% had non-complex characteristics. Conclusions: Compared with culprit-only PCI, non-infarct-artery MI in the preventive PCI strategy was uncommon and LV volumes and ejection fraction were similar

Low-Voltage Polymer/Small-Molecule Blend Organic Thin-Film Transistors and Circuits Fabricated via Spray Deposition

Organic thin-film electronics have long been considered an enticing candidate in achieving high-throughput manufacturing of low-power ubiquitous electronics. However, to achieve this goal, more work is required to reduce operating voltages and develop suitable mass-manufacture techniques. Here, we demonstrate low-voltage spray-cast organic thin-film transistors based on a semiconductor blend of 2,8-difluoro- 5,11-bis (triethylsilylethynyl) anthradithiophene and poly(triarylamine). Both semiconductor and dielectric films are deposited via successive spray deposition in ambient conditions (air with 40%–60% relative humidity) without any special precautions. Despite the simplicity of the deposition method, p-channel transistors with hole mobilities of \u3e1 cm2/Vs are realized at −4 V operation, and unipolar inverters operating at −6 V are demonstrated