shamalive
22-02-2007, 07:49 PM
To every fuckin spanner and idiot in the media blowing on about
fund managers ripping them off with "exit charges"....
Hear ye Hear ye....
This is common practice in the funds industry.
Lets say a fund is valued at EUR 1 billion,
99% of which is made up of various equity positions,
and all of a sudden 20% of shareholders want out.
This is not a normal activity, and so the fund manager
incurs costs in getting the funds together.
He she has to sell out of positions early, going against the investment
stategy and also incurring trading costs.
Hence, in normal circumstances, any large redemption (typically 5+% of fund), will be done at a reduced value.
Normal procedure. Nothing new here. No scam.
That is all.
fund managers ripping them off with "exit charges"....
Hear ye Hear ye....
This is common practice in the funds industry.
Lets say a fund is valued at EUR 1 billion,
99% of which is made up of various equity positions,
and all of a sudden 20% of shareholders want out.
This is not a normal activity, and so the fund manager
incurs costs in getting the funds together.
He she has to sell out of positions early, going against the investment
stategy and also incurring trading costs.
Hence, in normal circumstances, any large redemption (typically 5+% of fund), will be done at a reduced value.
Normal procedure. Nothing new here. No scam.
That is all.