Although the cost of upgrading computers for the year 2000 is proving to be substantial, it should have a limited impact on the profitability of publicly-traded mutual fund companies.

Nine money management firms which advise mutual funds expect to incur expenses of approximately $119 million to $129 million to upgrade their computer systems for the transition to the year 2000, according to filings the companies made in November with the Securities and Exchange Commission. Another three companies did not state cost estimates for their expenses, but said their so-called Y2K costs do not appear to be significant enough to hurt their businesses.

Subscribe Now

Access to premium content including in-depth coverage of mutual funds, hedge funds, 401(K)s, 529 plans, and more.

3-Week Free Trial

Insight and analysis into the management, marketing, operations and technology of the asset management industry.