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

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

Rating:PIMCO Fights Back with Redemption Fee Not Rated 3.0 Email Routing List Email & Route  Print Print
Monday, April 19, 2004

PIMCO Fights Back with Redemption Fee

by: Theresa Sim

PIMCO is responding to allegations that it improperly allowed market timers in its funds by adopting one of the SEC's fixes. The firm will be adding redemption fees to its funds.

All investors of PIMCO’s public funds purchased after June 15, 2004 will be subject to a two percent redemption fee, the company revealed in an SEC filing. The rule does not apply to PIMCO’s Money Market Fund.

Citing deterrence of "abusive trading" and recovery of short-term transaction costs, the firm is imposing a schedule of holding periods for its public funds ranging from seven days to 60 days. The fee applies to the net asset value of the shares exchanged.

Although some of the firm's funds already impose redemption fees, the rules in the Friday filing supersede any existing fees and holding periods.

The firm will not collect the redemption fee on broker-dealer omnibus accounts, certain retirement plan accounts, or other aggregated investor accounts. Because of these limitations, the redemption fees "may not successfully eliminate excessive short-term trading in shares of the Funds." The firm’s spokesman was not able to immediately provide information on the size of these accounts.

The SEC has recommended a new rule that would require all non-money market funds to impose a two percent redemption charge on shares held for fewer than five days. That rule is currently in a public comment period. 

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

3.0
 Do You Recommend This Story?



GO TO: MFWire
Return to Top
 News Archives
2024: Q2Q1
2023: Q4Q3Q2Q1
2022: Q4Q3Q2Q1
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:
Raw XML
Add to My Yahoo!
follow us in feedly




©All rights reserved to InvestmentWires, Inc. 1997-2024
14 Wall Street | 20th Floor | New York, NY 10005 | P: 212-331-8968 | F: 212-331-8998
Privacy Policy :: Terms of Use