I recently posted about how Etrade failed to post my $25 sign up bonus in the timeframe they commited to.
After a gentle reminder to their customer service department, the $25 was promptly posted.
Still no ATM card, but I sent that request via snail mail so I don't expect to hear back for a while.
Then when Etrade does the right thing, another issue crops up.
A couple of days ago I tried to add a small amount to a mutual fund I own: PNRZX Jennison Natural Resources Z.
Etrade's interface listed the details- this is a no load fund with $0 minimum for additional investments meaning I can add $5 if I want- some funds require at least $100 or $1000, etc.
Then when I tried to buy, I got an error message. I had added a little to this fund in early January so I was surprised by the issue. I sent another note to Etrade's customer service inquiring about the error. They must be getting tired of me, but I don't make these issues up.
"Thank you for your message regarding trading PNRZX. I apologize for any confusion. We no longer have a selling agreement with Jennison to sell the PNRZX fund. I have submitted a request to see if we can get another selling agreement but there is no guarantee that we are able to get an agreement. If you wish to sell the fund you can contact us by phone and we can place the trade for you. We can not allow you to purchase more shares through us until we have a selling agreement with the fund company."
Ok- so that is a bummer, but what irks me is they did not let me know. I own the fund, I add to it regularly. I have to find out by getting an error message and miss an investment opportunity? How hard is it to query out investors who own a fund when they lose the ability to buy or sell that fund through their interface and send us a heads up? How many other Etrade investors own this and are going to try and sell their holding and be thwarted?
Morningstar still lists that the fund is available through Etrade? See how Etrade is advertising itself on Morningstar's site above this false information?
I sent Morningstar an update that the fund is no longer available through Etrade. I'll let you know what they say.
You'll also note in the image above that the fund has an initial investment minimum of 10 million dollars. I put a little less than that (understatement) into the fund back in May 2006 (my initial investment is up almost 23%, the addition I made in Jan is down 5%).
I wonder if Jennision is trying to cut down on new cash coming into the fund, but does not want to close it to new investors for some reason. I also wonder if other fund companies are terminating buy agreements with Etrade and if this is a symptom of bigger issues? I really have no idea in either case, I just know if I want to sell the fund, I have to call Etrade and then try and avoid the fee they charge for phone orders...
Anyway, I understand that fund companies are going to do what they want, but I would have appreciated a notice about the change before I actually tried to add to my holding.