Alliance Capital Management will agree tomorrow to cut its fees 20% over the next five years, The Wall Street Journal reports this morning. The preemptive move a result of the firms negotiations with regulators in the fund scandal will be worth $350 million to investors and comes on top of an expected $250 million settlement.
The $250 million settlement alone will be the largest in the 63-year history of the mutual fund industry. As Money Management Executive reported last week, fundgate is moving into a new direction, one concentrating on fees ( see "Scandal Squeeze Moves on to Fees; Execs Worry About Pressures on Profit Margins" MME 12/8/03).
The staff of Money Management Executive ("MME") has prepared these capsule summaries based on reports published by the news sources to which they are attributed. Those news sources are not associated with MME, and have not prepared, sponsored, endorsed, or approved these summaries.