MutualFundWire.com: Derivatives Cause Headaches for Fund Firms
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Friday, May 4, 2007

Derivatives Cause Headaches for Fund Firms


Mutual fund accountants are working overtime as the result of an increased use of deriviatives. The WSJ reports that complex derivatives can be harder to price because they aren't heavily traded. If an error in price calculation were to occur, it could lower or raise the fund's net asset value, changing the value of an investor's account. However, no fund forms have reported such an error as of yet. But there could be....


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