PeterL wrote:
> I don't think it really matter what the name of the fund is. I think
> the general question is, for funds that's managed by a company (John
> Hancock, Fidelity, Vanguard, Schwab, whatever), the OP's question is,
> if the management company goes belly up, is the money invested in that
> fund safe.
The way you phrase it, no. If an investment house is found to have
stuffed CMOs (mortgage backed debt) into money market funds to juice
their returns, if the funds take a huge hit the ripple effect may take
down the firm. So we are back to the name of the fund to understand its
prospectus and confirm its contents. If JF has a fund consisting of
nothing but treasuries (for example), JF can very well go under and that
fund is still fine. Not to pick your syntax (the if/then statement you
offer) but we need to be clear why they went under before commenting on
the safety of the funds they manage.
Joe
www.blog.joetaxpayer.com
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