The number of funds that have been liquidated in the first quarter of this year is similar to that of last year, but the number of funds introduced in the same period last year far exceeded those introduced this year, according to a report released last week by Wiesenberger/Thomson Financial of Rockville, Md. Forty funds were liquidated in the first three months of 2001, compared to 35 a year ago, according to Wiesenberger. But while 255 funds were introduced in the first quarter of 2000, only 55 have been introduced this year. The most obvious reason is the declining market, which has further increased competition for assets among funds, according to the report.
"Even Wiesenberger's report on fund liquidations at the end of the third quarter attributed the rise to the fierce competition in the fund industry and not necessarily to the market's woes," the report said. "But today, with the market crash entering its 13th month, it would be too forgiving not to ascribe the liquidation mania to the bears."