Schwab and BofA Expect to Recoup Waived Money Fund Fees
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Wednesday, November 30, 2011

Schwab and BofA Expect to Recoup Waived Money Fund Fees

Money market fundsters take heed: several money market shops, which waived several billion dollars in fees over the past two years, are set to recoup those fees at a future date, Reuters reports. But not all of them will follow through.

In particular, Charles Schwab Corp [see profile] reportedly said it could potentially recover $878.2 million in previously-waived fees from investors in a number of its money market mutual funds. According to a filing, the fee recapture could take place over a three-year period that ends in 2014.

Also, Bank of America Corp's recovery could reportedly total some $113 million across several money market funds. Overall, money market funds waived some $4.5 billion in expenses in 2010, or more than three times the amount waived in 2006, according to data from the Investment Company Institute (ICI).

But not everyone is interested in recouping lost fees. JPMorgan Chase & Co Inc spokeswoman Kristen Chambers told the pub that its funds don't plan to claw back previously waived fees in future years. State Street Global Advisors [see profile] has said that it does not have the ability to recover amounts waived or reimbursed from prior periods. And a spokesman for Fidelity Investments [see profile] said that the Boston Behemoth can recoup fees within the fund's fiscal year, if desired.

"If these waived fees are not recouped by the funds prior to the fund's fiscal year-end, shareholders would pay less in annual fees than the disclosed fees," the Fido spokesman said.

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