The Future of Gartenberg: A New Approach in Evaluating Investment Adviser Fees

For more than 25 years, the Gartenberg factors have served as the prevailing standard for a court to determine whether investment adviser fees are excessive under Section 36(b) of the Investment Company Act of 1940. On May 19, 2008, in a departure from Gartenberg, Chief Judge Easterbrook of the Seventh Circuit, joined by Judges Kanne and Evans, decided Jones v. Harris Associates L.P.