Report: Soft Dollars Hinder Performance?
Traders Magazine, July 2002
Soft dollars are hurting portfolio perfor mance, according to a new study. Each penny per share spent in brokerage commissions reduces a typical portfolio's annual return by six basis points, claims the study by Ennis Knupp + Associates in Chicago. That's despite another view that soft dollars ensure the continuing flow of vital information from small, but specialized research houses to investment managers. With scandal tarnishing the reputation of research published by investment banking firms, specialized independent research has become more important.
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