"A long downturn could take a toll on mutual funds" writes LA Times. The market downturn could cause "higher fees, fewer funds to choose from and possibly the downsizing of the [fund] companies' investment research departments," says The Times, adding, "As rates have tumbled, some firms have been forced to reduce fees to prevent money-fund returns from turning negative. Other companies have limited new investments in Treasury money funds. For the companies, fee cuts have thus far been offset by the tide of money rushing into money funds from investors fleeing riskier holdings, said Peter Crane, chief executive of research firm Crane Data. But if rates stay low for a long time, fund managers could introduce monthly account fees similar to those at banks or charges for ancillary services such as wire transfers." It quotes Crane, "After a while they're either going to give you your money back or they're going to charge you for it."
