However, the pendulum has swung. Era 2 has already begun, although it's impact is only just beginning to be felt. Never have the signs of change been 90 manifest. Many of the changes were initiated by Arthur Levitt, the current chairman of the SEC, and have certainly been pushed along by a well informed, if occasionally over zealous, financial press. The fees charged to funds for distribution and management will be much better understood.
Mutual funds are now so widely held that they are everyone's business.
The increasing reliance everyone has to place on private retirement plans, college savings and contributions to health care has made the purchase of mutual funds the talk of nearly every kitchen table. Americans realize that their families would be better off had they invested their social security contributions in mutual funds, rather than entrusting them to a deficit ridden federal government. In Era I the role of the independent trustee was essentially defined by law. Participation in the oversight process was legalistic and mechanical. Trustees attended quarterly meetings, paid attention, drew a small stipend and left the controversial issues to the management company.