1.   Some companies incur unnecessary underwriting costs, presumably because of a lack of appreciation of the mechanics of a rights issue....

2.   Occasionally, rather than face the underwriting costs, purchasers may make the rights issue at a deep discount.

3.   A scheme may make underwriting costs prohibitively expensive.

4.   A cash underwritten alternative may also result in lower underwriting costs.

5.   Another reason so few new funds are being sold is investment banks are asking management groups to absorb the underwriting costs of new fund offerings, he said.

6.   Previously, these transactions were structured so that buyers of the funds would cover the initial underwriting costs and that ate almost immediately into shareholder returns, Costello said.