Mutual funds are playing the name game more than ever these days, and while marketing or mergers and acquisitions compel most changes, sometimes it's a sign of a more significant shift.
For example, according to a recent report from The Wall Street Journal,
Those changes typically don't require shareholder approval. But sometimes a name change is a sign that the fund is headed in a different direction. So to protect shareholders, the
For instance, the Westwood Realty Fund changed its name in July to the Westwood Income Fund so it could broaden its investment focus and mitigate risk. The fund's investment advisor,
But outside of altering the investment focus, why do funds continually play the name game? Studies have shown that customers react favorably to funds with names that imply the hottest investment topics. In fact, one study showed that funds that changed their name attracted 22% more assets than funds of the similar size and focus that hadn't changed their name. And, according to researchers, funds that change their names typically don't lose investors; they only gain them.
There's a flipside to the name game, too. In 2004,
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.
