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 |
|
Tuesday, March 9, 2004 Merrill Ready to Add Redemption Fee Merrill Lynch is planning to add redemption fees to its mutual funds in order to discourage market timers, according to a published report. Reuters reported the move, which claims it obtained an internal memo detailing the changes to the funds. The redemption fee will cover 25 mutual funds advised by the brokerage giant and is scheduled to take effect on June 30. The fee will apply to shares held for fewer than 30 days. If adopted, Merrill's redemption fee policy will be far stricter than the five-day holding period policy recommended by the ICI and recently recommended for adoption by the SEC. The fee itself would be the same 2 percent recommended by the SEC. Merrill executives plan to inform its clients of the decision later this week, according to the memo. "In response to the continuing, industry-wide mutual fund trading issues, Merrill Lynch Investment Managers has worked ... to introduce redemption fees for short-term transactions in certain funds to further protect shareholders from short-term trading activities," the memo states, according to Reuters. Printed from: MFWire.com/story.asp?s=6795 Copyright 2004, InvestmentWires, Inc. All Rights Reserved |