From a WSJ article on a new report by Harvard professor John Coates on the non-partisan Committee on Capital Markets Regulation.

On taxes paid by investors in mutual funds:

I was struck as an investor as much as an academic by how unfair the process is, especially for middle-class people. We’ve set up a system that punishes people who can’t afford to invest in hedge funds.

The article continued:

Mr. Coates said the U.S. mutual-fund industry is hampered by tough restrictions imposed by the Investment Company Act [of 1940] that make the industry dependent on the Investment Management Division of the SEC for growth and innovation. The SEC division hasn’t kept pace with the growth of the fund industry, Mr. Coates said.

Long live Spoke Funds®.