Garett Van Wagoner of the
The common method is yearly costs being based on asset levels in a fund, but now VanWagoner will lower his fees if he fails to beat his benchmarks, according to a filing with the
Huge players in the market such as
The Van Wagoner Funds board of directors has approved the move, and the firm is currently waiting for the thumbs up from investors.
Observers assert that after such poor mutual fund performance and stock declines in recent years, the idea of paying less for such dismal returns might be particularly attractive to investors.
Mercer Bullard, a professor at the
Van Wagoner has opted for this move in a very tough period for the company. It currently manages assets of $200 million, a stark contrast from the $2.7 billion it managed at the end of 1999, during the tail end of the tech boom. The fund managers insistence on sticking with Internet, technology and software bets has forced the firm to fold three portfolios.
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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.
