The writer is chief executive of the Investment Company Institute Ambitious policymakers from both big US political parties are looking to make hay of the failed idea that retail investment funds hold too much stock in our largest companies. They are hoping to advance headline-grabbing policy agendas that would ultimately harm everyday American investors. As retail investment funds have grown, they hold larger — though still minority — stakes in a range of companies.
This is to say nothing of the fact that diversified funds own holdings such as hotels, which would be harmed by an increase in airline ticket prices. Those who can’t bear to let a good fairy tale go to waste are desperate to keep the story alive by trying to stretch their claims to retail banking. But such claims of anti-competitive effects again fell apart.