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 firm’s 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).

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