This Day On The Street
Continue to site
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here

Munder Plans to Close NetNet Fund

Amid steep cash inflows, Munder Funds today announced plans to close its (MNNAX) fund to new investors April 17. After that, only current shareholders will still be able to buy shares of the largest Internet-focused fund.

The $11.5 billion broker-sold fund is larger than all other Net funds combined. It's closing to keep its size from impeding its ability to invest effectively in the subsector. At the end of last month, the fund's cash stake was a modest 4.1%, but the closing strategy is curious. Typically when a fund closes, it sets an asset limit or gives just one or two days' notice. Fund-watchers have often said that hot fund closings announced weeks in advance like this one trigger a "limited-time offer" buzz, ironically or intentionally leading to a mountain of cash.

Investors have been stuffing money into tech funds at a record pace over the past year, and NetNet has gotten more than most. The fund started 1999 with less than $1 billion and finished the year at $7.4 billion. It was the 14th top-selling fund last year with inflows of $3.7 billion, according to Boston fund consultant Financial Research, and it took in another $604 million in January.

As usual, all of those checks came on the heels of hot performance. Started in August 1996, the fund has ridden one of the hottest sectors of the market. NetNet's stunning 121% three-year annualized return, though outshined by the (WWWFX) fund's 147%, beats nearly every technology fund and thumps the S&P 500 by more than 95 percentage points, according to Morningstar.

The cash gushing into the fund might be slowing it down -- albeit slowly. The fund's 143% return over the past year actually trails 72% of its tech fund peers, according to Morningstar. Its 29% return since Jan. 1 matches its category average.

Media darling Paul Cook leads the fund's five-member management team. He's known for a somewhat diversified investment approach, stretching the definition of a Net company to include broader tech plays like Cisco (CSCO), Oracle (ORCL), and Sun Microsystems (SUNW). It does, however, have a healthy dose of "pure play" exposure like (INSP), the fund's top holding on Feb. 29, which is up more than 60% this year.

Like the Net sector, the fund's performance has come in gaudy bursts. It returned more than 175% last year, almost 80% in the fourth quarter alone. It has also posted losses in four of 13 quarters since its inception, the worst being a 21.2% downturn in 1997's first quarter.

Munder has prepared for its top-seller's closing by developing other tech funds run by members of NetNet's management team. Last October, the firm launched (MTFAX), and it will launch International NetNet April 3.

Future Technology is up 42% since Jan. 1 and already has more than $2 billion in assets.

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
Dividend Stock Advisor

David Peltier identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Real Money

More than 30 investing pros with skin in the game give you actionable insight and investment ideas.

Product Features:
  • Access to Jim Cramer's daily blog
  • Intraday commentary and news
  • Real-time trading forums
Only $49.95
14-Days Free
14-Days Free
AAPL $94.98 -0.21%
FB $116.77 -0.56%
GOOG $692.36 0.00%
TSLA $230.00 -1.00%
YHOO $36.01 0.00%


Chart of I:DJI
DOW 17,750.91 -140.25 -0.78%
S&P 500 2,063.37 -18.06 -0.87%
NASDAQ 4,763.2240 -54.37 -1.13%

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs