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It's not just business as usual when dealing with mutual fund providers. Local financial professionals continue to receive increased and more detailed communiques, which are welcome because mutual fund families are adjusting their offerings because of an anticipated hike in interest rates.
Since reports of late trading broke in fall 2003 and with ongoing investigations by the Securities and Exchange Commission, companies are going to great lengths to provide greater transparency.
"They're over-disclosing from what they were doing in the past<' said Bradley Tiche, president of Tiche Capital Strategies LLC, an investments advisory firm based Downtown.
In fact, some fund providers went into a crisis communications mode to appeal to financial professionals.
"I was pounded by letters from presidents of the nation's largest fund families apologizing for certain fund manager's actions and asking for continued confidence," said Noah Farberow, senior vice president and financial planner, Golden Strategies Financial Group, Washington, Pa.
"When you visit most fund companies' Web sites or 800 numbers, they usually state their late trading policy right away," Mr. Farberow continued. "Some fund families implement fees on redemptions of recently purchased shares, which cuts down on frequent trading."
He believes...