Sacks Equalization Model Retains TransMedia Group to Publicize How It Can Level an Unequal Playing Field for Mutual Fund Investors, Saving Them $10 Billion a Year

NEW YORK, Feb. 27, 2012  /PRNewswire/ -- The Sacks Equalization Model has retained TransMedia Group (www.transmediagroup.com) to publicize the seal a mutual fund can display, assuring investors of a level playing field, which today the model's inventor and patent holder says is anything but level.

TransMedia said its publicity will focus media attention on the unfair pricing policies of most mutual funds, which are costing investors, many of them seniors living on fixed income, more than $10 billion a year. 

"Our main message will be that the mutual fund industry needs to equalize its unfair pricing policies, which is the problem, for which our client, the Sacks Equalization Model is the solution," said TransMedia Group CEO Tom Madden. 

"Our publicity will emphasize that the playing field needs to be level so investors aren't paying differently like airline passengers do according to when they book flights. New mutual fund purchasers and those liquidating mutual fund shares have an unfair price advantage over existing shareholders," said Madden. 

"New shareholders are being partially subsidized by existing shareholders and regulators don't seem to mind an unequal sharing of the stock brokerage fees that mutual funds incur from ongoing buying and selling of portfolio securities," he said.  

According to Madden, long-term shareholders also are bearing costs caused by frequent trading and market timing by short-term investors.  "We will publicize that two respected researchers have recommended adoption of the Sacks Equalization Model (www.sacksmodel.com), a patented algorithm designed to level the mutual fund investment field," said Madden.

In their research paper, "A New Method For Computing Mutual Fund NAV In Light Of Liquidity-Induced Transaction Costs", Professors Miles Livingston of the University of Florida and David Rakowski of Southern Illinois University Carbondale said the model takes into account the net value (NAV) of the mutual fund and accumulated stock brokerage fees.

Accumulated commission fees are then added to the net asset value per share prior to purchase of shares and subtracted from the net asset value per share prior to the liquidation of the shares, thereby leveling the field. And those monies flow back into the fund for the benefit of all shareholders.

CONTACT: Abby Blake, of Transmedia Group, +1-561-750-9800 x229

SOURCE TransMedia Group