Fund company trims time for conversion of B shares

Article Abstract:

Putnam Investments, the fifth biggest mutual fund company in the US, has decided to curtail the time it takes to convert high-cost B shares to lower-cost A shares. B shares are among the hottest-selling funds among brokers as B shares, unlike traditional broker-sold funds, have no upfront sales charge. B shares are, however, costly in the long run as the fund firm has to pay the broker who obtains an upfront commission from the fund for selling B shares. Most B shares convert to A shares after eight years and drop the extra 12b-1 charge.

Comment:

Decides to curtail the time it takes to convert high-cost B shares to lower-cost A shares

Services information, Putnam Investments Inc., Article

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Fidelity's president has familiar name

Article Abstract:

Abigial Pierrepont Johnson is the new president of Fidelity Management and Research (FMR), which manages $773 billion in 267 stock, bond and money market funds for parent Fidelity Investments. Johnson is the daughter of Edward C Johnson III, the chairman and CEO of FMR. She will oversee all of Fidelity's fund managers, traders and analysts, including Robert Stansky, manager of Fidelity Magellan. In 2000, Forbes magazine listed her as the 18th wealthiest person in the USA, with a net worth of $10 billion.

Executive changes & profiles, Fidelity Management and Research Co.

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Vanguard refuses to be shaken

Article Abstract:

The Vanguard Group continues to maintain its focus on index funds even though investor sentiment seems to be moving towards managed funds. While Vanguard's flagship fund, the $106 billion Vanguard 500 Index fund has become the country's largest stock mutual fund, Vanguard itself has failed to attract additional investments. The company prides itself on its low structure because it does not have analysts and fund managers and the tax inefficiency of managed funds.

Strategy & planning, Vanguard Group of Investment Cos.

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