MutualFundWire.com: Heartland Tires of Timers
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Friday, August 13, 1999

Heartland Tires of Timers


Those who want to hop out of the Heartland Value Fund or Heartland Value Plus within 270 of purchase will now pay a 1% redemption fee, according to the Milwaukee-based $2.8 billion fund family.

Related Links
  • Heartland Funds
    • On MFWire.com
  • Oakmark Adds Redemption Fee
    • With day trading and market timing firms increasing in popularity, investors seem to be clicking their mouse more than ever. The additional fee is a move being made to discourage market timers who rack up transaction costs and disrupt the management of a fund's portfolio.

    Market timing can be particularly hard on small-cap funds because frequent redemptions can force the portfolio manager to sell stocks at below market price.

    The $1.3 billion Heartland Value Fund appeared to be the main target, according to the company, due to its age and solid performance.

    Redemption fees are growing in popularity as a means of coping with market timers. Other funds that have recently added fees include the Invesco, Montgomery, Oakmark, Strong, and Vanguard fund families.


    Printed from: MFWire.com/story.asp?s=24531

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