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, July 18, 2003 Bay Area Firm Saves by Swapping Back Offices Van Wagoner Funds has found another way to shave its costs. The San Francisco-based fund complex has hired a new fund accountant and administrator willing to perform the task for less than the incumbent. The winner of the mandate is PFPC, the current transfer agent for the funds, while the erstwhile loser is UMB Investment Services. Peter Kris, vice president and managing director at Van Wagoner Capital Management said that that he expects the new servicing arrangement that to generate savings for shareholders. The decision to swap providers came after Van Wagoner started to try to renegotiate fees with its service providers as it sought to cut costs. The fund firm has been seeking to cut costs as its asset base has dwindled along with the Nasdaq index. Assets under management at the firm slid more roughly 90 percent to just $270 million from around $3 billion at their height. UMB declined to cut its charges when asked by Van Wagoner, essentially resigning from the account. PFPC then stepped into the breach and cut a deal to offer fund accounting and administration, custody and regulatory administration services in addition to the transfer agency services. PFPC has provided the latter services to Van Wagoner since December of 2000. The agreement covers all of Van Wagoner's funds. Printed from: MFWire.com/story.asp?s=5522 Copyright 2003, InvestmentWires, Inc. All Rights Reserved |