DS Securities & Investments Ltd. (TASE:DSIN) will begin charging management fees of 0.125% on its money market funds, beginning on February 1.
DS did not follow its competitors, Harel Insurance Investments and Financial Services Ltd. (TASE: HARL) unit Harel Finances Ltd. and Psagot Investment House Ltd. in charging management fees on their money market funds last July. Those firms almost immediately reversed the decisions for fear of withdrawals by investors.
DS's decision to begin charging management fees now is not surprising.
Earlier this week, Psagot announced that it will begin charging management fees on its money market funds beginning in February. Psagot is the largest mutual fund and money market fund manager.
Other money market fund managers are expected to follow suit after Psagot and DS and begin charging management fees of 0.125% on their money market funds. Since this amount only covers the distribution fees the companies pay the banks, the companies will probably further raise their management fees on their money market funds to 0.3-0.4%.
Published by Globes [online], Israel business news - www.globes-online.com - on January 29, 2009
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