MutualFundWire.com
The insiders' edge for 40 Act industry executives!
an InvestmentWires' Publication
an InvestmentWires' Publication
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MutualFundWire.com
The insiders' edge for 40 Act industry executives!
an InvestmentWires' Publication |
|
Friday, September 28, 2001 Fund Fees Come Under Further Stress Those paid to be right about the fund industry's fee income are concerned that fees are heading lower. The news may not come as a surprise as assets run by the asset fee-based industry plunge. While investors are not pouring money into funds with the same gusto as in prior years, it is falling equity prices that are taking the biggest bite. Confirmation of the direness of the situation was provided today by Fitch. The ratings agency placed eight tranches of securitized notes on credit watch. The notes are backed by fee income derived from equity and fixed income mutual funds. The issues placed on credit watch were FEP Receivables Trust 2001-1 and the Putnam Lovell Finance Trust 1999-2. Both issues has been downgraded on July 25 over concerns of fee income in the fund industry. Today's action was taken in response to the attack on the World Trade Center September 11. "This action is being taken due to the increased uncertainty of the future fees generated by equity and bond mutual funds after significant mutual fund net asset value (NAV) declines following the tragic events of Sept. 11," wrote Fitch analysts in a statement. "Even prior to Sept. 11, performance of these transactions had been below expectations as a result of earlier market value declines in mutual fund NAVs." Printed from: MFWire.com/story.asp?s=27029 Copyright 2001, InvestmentWires, Inc. All Rights Reserved |