Mutual Funds -- Legal Question

chisueAugust 26, 2007

Is each fund within a group of funds a separate legal entity? That is, could the ABC Fund within the 'house' of say, Thornburg Mutual Funds, be tapped to meet the needs of the XYZ Fund? Wouldn't that comprise "co-mingling" and be illegal?

Thank you for reporting this comment. Undo
Karen_sl

Each fund is a seperate entitiy...American funds has lots to offer and each fund stands on its own in earnings and losses...
Karen L

    Bookmark   August 27, 2007 at 10:46AM
Thank you for reporting this comment. Undo
dontknow

As karen_sl has mentioned, each fund is a legal entity.

Also know that there are such things as "funds of funds" where the "marketed" fund is actually made up of other funds.

Many of the Targeted Retirement Funds are managed this way.

    Bookmark   August 28, 2007 at 7:07AM
Thank you for reporting this comment. Undo
chisue

Thanks, karen_sl and dontknow. This 'funny money' (over-rated mortgages bundled and sold) has me nervous.

Thornburg was on my mind because we own one of its funds and its mortgage branch is in trouble -- same CEO for the Mutuals and the Mortgage.

    Bookmark   August 28, 2007 at 9:45AM
Sign Up to comment
More Discussions
Do I need to give a 1099-misc to the lady who cleans for me?
For the first time ever, I began having a lady clean...
sogofan
Family Banking Concept, anyone heard of it?
I did a search here and did not see any similiar thread....
rjinga
Investing for your Future
I'm wondering if most people today hire financial planners...
cmarlin20
Spending Breakdown
My wife and I have tracked our spending over the last...
rjexit5
Garrett Financial Network
Does anyone have experience with Garrett Financial...
sushipup1
© 2015 Houzz Inc. Houzz® The new way to design your home™