US Mutual Fund Managers Wary Following Resumption Of Trade

by Philip Morton, Investors Offshore.com

20 September 2001

Mutual fund managers in the United States have reportedly stayed on the sidelines since the markets reopened on Monday, waiting for the sharp selling activity to slow after last Tuesday's terrorist attacks.

Dennis Ferro, the Chief Investment Officer for Evergreen Investments, spoke to Reuters regarding the mood in the fund management world earlier this week: 'I think we will be taking a more cautious approach,' he said. 'I don't think it's the healthiest environment to do any meaningful trading.'

Large fund companies such as the Vanguard Group and Janus Capital Corp. have apparently reported a slight increase in calls from individual investors worried that their funds are holding large stakes in airline stocks.

Meanwhile, the patriotic rally hoped for by some experts to boost stocks does not appear to have come to pass, which is not really surprising given the potential risks and challenges faced by the US economy in the wake of the attacks. 'I think what we need to be doing is investing based on financial analysis,' Ferro told the US news service. 'That will be the best thing we can possibly do both for our investors as well as the economy overall.'

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