Money-Fund Expense Game
From The Wall Street Journal
The Money-Fund Expense Game is explained by the Journal, "an activity at which many fund companies are experienced players." One example, Strong Capital Management Inc., who has pushed Strong Investors to the top of the money-fund heap by temporarily running the fund at a financial loss. For investors the fund has been a great deal -- the fund's seven-day compound annualized yield is 5.59%, compared with an average 4.82% for general-purpose money funds, according to IBC Financial Data Inc. of Ashland, Mass. The object: the fees that are waived boost the fund's yield substantially, the fund advertises its top performance and voila, a flood of new money and fees are replaced as normal.

Schwab's mutual funds saves the day
From The Wall Street Journal
It's the most wonderful time of the year ... We are talking about earnings season of course. And if anyone is going to be singing it will be Charles Schwab's mutual fund division. The company said yesterday that net income rose by 27% in the third quarter, driven by a surge in customer assets into its mutual funds. The inflow of money helped to make up for lower levels of stock trading during the quarter, analysts said. Schwab saw revenues fall by 10% from the second quarter in its pure online broker division.

Let them eat cake
From The Wall Street Journal
John Hancock Mutual Life Insurance and Mutual of America Life Insurance, a New York-based life insurer and Hancock policyholder since World War II are having a little dispute over a lot of money. Mutual of America says it is entitled to a share of the Hancock's IPO pie. Hancock says otherwise. At the center of the debate is Mutual of America's complex, 54-year-old contract -- and whether it entitles the New York insurer to what could amount to a stake initially worth up to $60 million in the new Hancock.

Monument works hard to grow company
From TheStreet.com
As reported earlier this week in the MFWire.com, Monument's Internet fund is splitting 3-for-1. TheStreet.com agreed that a mutual fund split is a marketing plea. President of the fund company, David Kugler, said, "As a small company, you've got to work hard and diligently every day to grow that company," Kugler says. "We might do some things that maybe Vanguard doesn't, but we're proactive and try everything we can. We're just trying to run a business."  

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