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Mutual Funds -- Legal Question

Posted by chisue (My Page) on
Sun, Aug 26, 07 at 13:17

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?

Follow-Up Postings:

RE: Mutual Funds -- Legal Question

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

RE: Mutual Funds -- Legal Question

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.

RE: Mutual Funds -- Legal Question

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.

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