Derek DeCloet wrote an article in today’s Globe and Mail that most fund companies probably don’t want you to read.

He cites strong net redemptions in January from some of the industry’s "lumbering giants", and concludes that poor markets are not to blame. Rather, he suggests that fund companies have lost touch with their investors. In his words, "They’ve become unmoored. As they morphed into giant asset-gathering machines, they somehow lost their feel for what their customer wants. Maybe it’s more accurate to say they lost sight of who their customer is: Most exist to serve financial advisers, rather than investors."

He adds high fees, short-termism (launching funds that chase the latest fads) and a lack of experienced investment leadership at the top as other key reasons why the fund industry is ailing.

Well said Derek. Your Steadyhand T-shirt is in the mail.