The mutual fund industry appears to be in some kind of turmoil. Recent legislation forced it to become more accountable by placing the microscope firmly on fees. With every player so keen to impress the consumer and the regulator, recent advertising looks like a bargain sale at your local electronics store. This is hardly the sophisticated image that many of these brands had in mind in the early and mid 1990s, the time when they invested heavily in advertising campaigns to sharpen up and deepen their brand images. Then there's the small issue of brand name; many of the fund owner's names are being changed to eliminate associations with past problems which adds further to consumer confusion.
Winning back consumer trust is going to be a long-term endeavor for many of these players. While the incumbents wait it out, there might be room for a new innovative entrant, bold enough to bring some true transparency. Could this new entrant attract the booming Prius crowd with a transparent and socially responsible concept?
