In Thursday's WSJ FundTrack
, Diya Gullapalli
reports on a fund shop's decision to activate "in-kind redemptions," following a rush of redemptions. Asset Management Fund
, a mutual fund complex run by Shay Asset Management
, activated the in-kind redemption policy of its AMF Ultra Short Mortgage Fund
earlier this year. The in-kind redemptions give the shareholders of the fund who wish to redeem shares, not cash but securities and weak mortgage bonds.
, chairman of Asset Management Fund, tells Gullapalli that his company decided that paying departing investors in cash would have caused harm to the remaining shareholders. It "wouldn't have been fair," he said.
Thursday's Fund Track also mentions Pimco's
recent decision to get into the ETF business (see
MFWire, July 29, 2008).
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