Alleghany Funds has added a 2% redemption fee for investors who hold its international funds less than 90 days, effective immediately.
The express exit fee will be applied only to the
Alleghany/Blairlogie International Developed Fund and
Alleghany/Blairlogie Emerging Markets Fund. The firm's 10 other funds will remain untouched.
A spokesperson for the fund company said, the fund managers started seeing signs that redemptions might become a problem because international transaction costs are substantially higher.
"We closely monitor the asset flows into all of our funds, especially redemption from the funds with smaller asset bases. We are committed to keeping our costs low, because we know this is an important issue with our shareholders and fee-based investment advisor," said
Ken Anderson, president of Alleghany Funds.
In May 1999, Alleghany acquired Scottish asset manager,
Blairlogie Capital Management, and two associated international funds from
PIMCO Advisors.  
Stay ahead of the news ... Sign up for our email alerts now
CLICK HERE