The no-fee era at money market funds is coming to an end as Prisma Investment House Ltd. and Psagot Investment House Ltd. will start charging a management of 0.125% on assets.
Psagot was the first large mutual fund management company to announce the charging of fee for its money market funds, Psagot Money Market Shekel and Psagot Platinum, beginning on August 1. Primsa, the first fund manager to announce a zero-fee policy, will also start charging a fee on its Prisma Money Market fund.
Within an hour of Psagot's announcement, Harel Insurance Investments and Financial Services Ltd. (TASE: HARL) unit Harel Pia Mutual Fund Management Ltd. announced that it, too, will begin charging a fee of 0.125% on its Pia Money Market Pakam fund and Pia Money Market Shekel fund.
The current round of fee hikes may not be the last, and the fees could rise to 0.3% of assets managed. It will be interesting to see if other large fund managers will follow suit and start charging fees for their money market funds, or if they will opt to continue their zero-fee policies in an attempt to increase market share.
Published by Globes [online], Israel business news - www.globes-online.com - on July 30, 2008
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