The Ameritor family of mutual funds was nicknamed the "Dead Man Funds" as a result of its own horrendous functionality and also the supposition that people who kept their cash in the funds had no choice, in other words, they were dead. Established in the 1950s, the funds boasted $200 million in assets under management by 1970. But those amounts instantly dropped to practically nothing by the late 1980s.
Expense ratios skyrocketed as high 40 percent per annum, the SEC filed numerous lawsuits, and turnover rates reach at 400 percent in a few years. By 2010, the mutual funds had either been liquidated or went out of business. The case examines the passing of the funds, highlighting the investors who chose not to remove their capital as well as the first outflow of funds.
PUBLICATION DATE: October 03, 2011 PRODUCT #: F276-PDF-ENG
This is just an excerpt. This case is about FINANCE & ACCOUNTING\
Related Case Solutions & Analyses:
Brazos Partners and Cheddars Inc.
The Maple Acquisition of the TMX Group Inc.
Crowdfunding at the Brooklyn Warehouse
Business Valuation in Mergers and Acquisitions
Merrill Lynch: Supernova
The Delhi Land and Finance IPO: To Be or Not to Be?
Understanding Basic Financial Statements
International Investment Report
Le Taux Modèle: ING Direct, A Growing Success Story
LTCM’s Profit Motive
