John Rekenthaler: Fund Manager Financial Incentives Are Irrelevant

<p><p>Our guest this week is John Rekenthaler. Rekenthaler is a director in Morningstar Research Services and a feature contributor to our platforms, including Morningstar.com. A lucid thinker and brilliant writer, his popular "Rekenthaler Report" column has become a must read among investors, financial advisors, fund industry participants, and beyond.</p></p><p><p>Rekenthaler began his career at Morningstar in 1988 and has worn a number of hats, including leadership roles in our research and investment management divisions. Among other achievements, Rekenthaler has been a key player in developing some of Morningstar's best-known tools, including the Morningstar Rating for funds and the Morningstar Style Box. He holds a bachelor's degree in English from the University of Pennsylvania and a master's degree in business administration from the University of Chicago Graduate School of Business.</p></p><p><p><strong>Background</strong><br /></p><p><a href="https://www.morningstar.com/authors/208/john-rekenthaler">The Rekenthaler Report</a></p></p><p><p><a href="https://www.morningstar.com/content/dam/marketing/shared/research/methodology/771945_Morningstar_Rating_for_Funds_Methodology.pdf">Morningstar Rating for funds methodology</a></p></p><p><p><a href="https://www.morningstar.com/content/dam/marketing/shared/research/methodology/678263-StyleBoxMethodolgy.pdf">Morningstar Style Box methodology</a></p></p><p><p><strong>Investor Behavior</strong> <br /></p><p><span class="CMS__Document" title="942396">Morningstar's Mind the Gap study</span> </p></p><p><p>Rekenthaler Report: "<span class="CMS__Document" title="953285">Mutual Funds: Where Fun Came to Die</span>"</p></p><p><p>Rekenthaler Report: "<span class="CMS__Document" title="821370">3 Reasons Index Investors Deserve Perdition (or Not)</span>"</p></p><p><p>Rekenthaler Report: "<span class="CMS__Document" title="936342">Up-Front Investment Fees Are (Almost) No More</span>"</p></p><p><p><strong>Incentives</strong><br /></p><p>Rekenthaler Report: "<span class="CMS__Doc