A stream of litigation in the United States has led to increased costs and lower fees for mutual fund managers, according to Bob Grohowski of the Investment Company Institute.

And these two issues are expected to be the two top hot topics for the upcoming Globalisation of Mutual Funds Conference 2004, to be held in May at the Fairmont Southampton Princess in Bermuda.

“The big issues are the cost on funds and the cost of new regulation on funds,”said Bob Grohowski of the Investment Company Institute, “As part of the settlements, there have been agreements to lower fees. And there is definitely pressure from regulations which have produced increased costs. I think everyone is feeling that pressure.”

Organisers are hoping to attract over 300 delegates to the conference, which will take place between May 9 and 12.

“At our peak we got to 475, and we are looking to getting back to those kinds of numbers in the next few years,” said Mr. Grohowski.

He said last year there had been 280 delegates, and this year he hope there would be “well over” 300. He said historically the conference had attracted 40 percent of delegates from the US, 40 percent from the UK and Continental Europe and 20 percent from Bermuda and other offshore financial centres.

The keynote address this year will be given by Professor Peter Tufano, a senior associate dean and co-director of the faculty of development at Harvard Business School. His talk, on the first day of the conference proper, is entitled “A Global imperative - Putting the Investor First”.

This will be followed by the first panel discussion which will be on mutual fund fees and expenses and will focus on comparable, simplified disclosure of mutual fund fees and costs as well as regulatory initiatives on soft commissions.

Also on the agenda will be developments in key markets on disclosing transaction expenses and breakpoints, brokerage allocation practices and revenue sharing.

The “Role of Mutual Funds in Corporate Governance” will also be a panel discussion, with fiduciary duties and proxy voting as well as shareholder activism being discussed.

Outsourcing is another topic and the legal responsibility for any failures as well as proper supervision of the service on the listed programme. The second day will feature a series of breakfast discussion groups, followed by a panel on the recent developments in hedge fund offerings, including innovative structures and products, changing requirements in light of ongoing regulatory initiatives and the role of the money manager in training and monitoring the distributor.

Other topics include clearance and settlement of fund shares, wrap accounts and open architecture and a session on the market in Germany.