MutualFundWire.com
The insiders' edge for 40 Act industry executives!
an InvestmentWires' Publication
an InvestmentWires' Publication
|
|
MutualFundWire.com
The insiders' edge for 40 Act industry executives!
an InvestmentWires' Publication |
|
Thursday, November 18, 2004 MFS is Cool as a Cucumber Exchange traded funds and hedge funds may be popular now, but one mutual fund firm executive doesn’t see success for the products lasting long. Robert Manning, president and chief executive of MFS Investment Management, provided arguments against the fund competitors at an investors conference, reported the Canadian Press. "The hedge fund situation will end very badly - it's going to blow up; you'll read about big funds filing for bankruptcy and 25-year-old kids losing a lot of (other people's) money," said Manning. The hedge fund industry is too crowded and their fees are "ridiculous," the Canadian Press reported Manning as saying. As for ETFs, Manning thinks the average-return products won't be able to capture the interest of high-return seeking investors for long: "[p]eople don't want to buy average. They hope to be able to beat average, and human nature is such that they will come back to the mutual fund industry." Manning is optimistic about MFS' recovery from the fund scandals: "[p]eople like doing business with MFS; we're a humble company," reported the Canadian Press. Not just relying on residual reputation, Manning said that it is continuing to diversify its business beyond growth stocks. MFS settled trading abuse charges with regulators in February for $400 million in penalties and disgorgement. Printed from: MFWire.com/story.asp?s=8471 Copyright 2004, InvestmentWires, Inc. All Rights Reserved |