What's a money fund manager to do about fees when interest rates are so low and taking fees could mean pushing returns into negative territory? InvestmentNews
' Jessica Toonkel reports
that Huntington Asset Advisors
] is sticking to its guns when it comes to waiving money market mutual fund fees, at least until interest rates rise.
, president and chief investment officer of the asset management unit at the Columbus, Ohio-based bank, confirmed that Huntington will continue to waive its four money funds' management fees (40 basis points) and shareholder administration fees (25 bps) until yields rise, as it has for about two years.
"Huntington has chosen to forgo profitability on its money fund complex," Bateman told InvestmentNews
. "While there is a temptation to take more risk to increase yields, we aren't going to do that."
, president and CEO of Crane Data
, also weighed in for the article.
Of Huntington's $13.29 billion in assets under management, its four money funds hold $1.1 billion.
Neil Anderson, Managing Editor
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