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FYI - Fido is in the process of revaluing some > $ 100 funds.
Yup. And apparently w/o notice, thus freaking out many of their customers who saw massive losses on their positions heading into the weekend. Not cool, or customer friendly! ;/
Well, if you hold unspeakable things in portfolios how do you truly value things correctly? Isn't there a disclaimer in prospectus how NAV is calculated? One always runs the risk of this happening, especially in MM funds I would think which try to stay at $1 NAV.
@JoJo26 - Confused if you are saying reverse stock split is "revaluing". The total assets should stay the same it's only number of shares reduced and not have a higher NAV. Please tell me if I'm missing something. Penny stocks do this all the time to encourage institutional investors to take a look.
Frankly, I'm not really sure what all the fuss is about. Profunds does it constantly since both its leveraged fund and inverse funds can't do well at same time. Reverse splits are common as are normal splits.
@VF I think the big issue is that this was done w/o any forewarning, which freaked out their customers. Value-wise of the funds, it's a wash.
Though I find their statement about how this was done for those customers who like to buy round-lot shares of an OEF (ie, like a stock or ETF) is laughable .... and perhaps speaks to their motivations for "decreasing" the price of their funds.
Comments
The M* discussion of this item is @
http://socialize.morningstar.com/NewSocialize/forums/p/383436/3931553.aspx#3931553
MFO thread @
https://www.mutualfundobserver.com/discuss/discussion/40977/instant-heart-attack-fselx-has-10-1-split#latest
@JoJo26 - Confused if you are saying reverse stock split is "revaluing". The total assets should stay the same it's only number of shares reduced and not have a higher NAV. Please tell me if I'm missing something. Penny stocks do this all the time to encourage institutional investors to take a look.
Frankly, I'm not really sure what all the fuss is about. Profunds does it constantly since both its leveraged fund and inverse funds can't do well at same time. Reverse splits are common as are normal splits.
@VF I think the big issue is that this was done w/o any forewarning, which freaked out their customers. Value-wise of the funds, it's a wash.
Though I find their statement about how this was done for those customers who like to buy round-lot shares of an OEF (ie, like a stock or ETF) is laughable .... and perhaps speaks to their motivations for "decreasing" the price of their funds.