The MFWire
Manage Email Alerts | Sponsorships | About MFWire | Who We Are

Subscribe to MFWire.com's News Alerts [click]

Rating:LA Fund Firm Drops Minimums Not Rated 0.0 Email Routing List Email & Route  Print Print
Wednesday, January 22, 2003

LA Fund Firm Drops Minimums

by: Sean Hanna, Editor in Chief

TCW Galileo Funds is putting its best foot forward for its domestic stock and bond funds by lowering the minimum investment required on its I shares. Going farward, investors need only commit $2,000 rather than $25,000 to purchase the shares.

Ron Redell, senior vice president in TCW Advisor Group's mutual funds unit, explained that the firm made the move to open up its funds to direct investors. "This gives us a chance to compete against other fund firms for retail investors," he explained. Redell believes the firm now carries a number of competitive funds and wants to ensure that those funds are given a fair shake by retail investors seeking funds through what he terms "infomediaries". That group includes Morningstar, Standard & Poor's, Lipper and Value Line.

"We don't want to get kicked out of screens because of our minimum," he explained. "If we are going to get kicked out of screens, we want to be kicked out based on our performance." He noted that the firm's intermediate bond fund is currently a strong performer and should benefit from the change as it competes with Pimco to win retail assets.

TCW will continue to offer its three-year old N shares that carry a 12b-1 fee. Redell explained that TCW is comfortable offering two share classes with the same minimum since it provides a choice for investors and advisors of whether to buy the funds through a transaction fee network using I shares or a NTF network using N shares.

Not changing will be the $250,000 minimum initial investment for the five Institutional Strategies funds, nor will TCW be dropping th $25,000 minimum for its five international funds. In the latter case, the decision to keep the minimum in place was a response to efforts by arbitrageurs to take advantage of other investors in the funds.

Redell does not believe the new move to take assets directly from retail investors will alianate the advisors who currently recommend the funds to their clients. "We are not advertising the funds to retail investors," he explained. Rather, the firm is providing an option to retail investors who make the effort to learn of the funds through infomediaries. 

Stay ahead of the news ... Sign up for our email alerts now

 Do You Recommend This Story?

Return to Top
 News Archives
2021: Q4Q3Q2Q1
2020: Q4Q3Q2Q1
2019: Q4Q3Q2Q1
2018: Q4Q3Q2Q1
2017: Q4Q3Q2Q1
2016: Q4Q3Q2Q1
2015: Q4Q3Q2Q1
2014: Q4Q3Q2Q1
2013: Q4Q3Q2Q1
2012: Q4Q3Q2Q1
2011: Q4Q3Q2Q1
2010: Q4Q3Q2Q1
2009: Q4Q3Q2Q1
2008: Q4Q3Q2Q1
2007: Q4Q3Q2Q1
2006: Q4Q3Q2Q1
2005: Q4Q3Q2Q1
2004: Q4Q3Q2Q1
2003: Q4Q3Q2Q1
2002: Q4Q3Q2Q1
 Subscribe via RSS:
Add to My Yahoo!
follow us in feedly

©All rights reserved to InvestmentWires, Inc. 1997-2021
14 Wall Street | 20th Floor | New York, NY 10005 | P: 212-331-8968 | F: 212-331-8998
Privacy Policy :: Terms of Use