European Stars And Stripes (Newspaper) - November 9, 1986, Darmstadt, Hesse Sunday november 9, 1986 the stars and stripes fags 19 investor s sunup by William a Doyle q. In � number of Colwyn tit the put Itterl Yean Yon have and tree von ram to Itter Char of Rutial and with "1ih rills and in Duk no Load in tue Buie without neb abuts. My item toned tint neb Puu in rip Ehi. A mkt tar i no Etc not Elk a plans pm by we 0od and explain that by adopting 12b-t pin until Mutual and 1 or in Ilie Andoch Nan profitable. Do a. Not for one minute. I m a great believer incur free Enterprise sys tem which is fuelled by profits but Doyle thai newsletter writer either does t understand 12b-l plans or is playing Patsy for the manage ments of Mutual funds with such plans. Let s get Back to basics. A Mutual fund is owned by its shareholders each of whom receives proportionate share of the fund s dividends and Seta the value of his Ore Shartt Rise or fall every Mutual fund has a management which collect an advis Ory fee from the fund. Typically the advisory fee is one half of i percent of the fund s assets calculated on an annual basis. With that fee management gets a year from a j10 million fund. $500,000 from a s100 Mil lion fund $5 million from a $1 billion fund. We re talking about mighty big management revenues. Although most Mutual fund percentage advisory fees Are scaled Down a Smidgen As a fund grows in size management Natu rally makes More Money from a Large fund than from a Small fund. So As sure As night follows Day managements try to increase fund Motal assets. However an increase in a Mutual fund s total size does not necessarily Benefit shareholders. When such an increase mulls Only from the Sale of new shares the value of each share docs t shareholder s investment re Mains that the per share value is arrived at by dividing a Mutual fund s total be assets by the number of shares outstanding owned by investors. A 12b-l plan allows to use up to 1.25 pc fund s assets each Yea lion such things As Public relations sales lit commissions to brokers is an additional bite out of fund As sets and cuts into the value of share holders investments. I summed up. A 12b- plan is a Good Deal for the management of a fund with such a it Anjbal it s no Good for shareholders. This column n written for the investing punic not Mutual fund manage nent q. B ten publication which Ide Nurk Nurna fund with and Wilhel leads red Mph a few and lab a Tuata the two Best sources Are the Forbes Magazine Anni u Mutual fund Survey and then Load Mutual fund Assn. Director y. The excellent Forbes Survey is i i that publication s sept 8 n sue. Tie of the dist by rising and charge business or is High interest rates Spur Retreat after gains Early in the week new York up the Stock mar Ket scored a gain in Active trading last week but the bulk of its Advance occurred in the beginning of the week. Sell ing dominated activity at the end. For the first time since Early septem Beruk Dow Jones Industrial average appeared As if it might be headed for close above 1900. It fell just Short How Ever adding Only 8.72 Points to end the week at 1886.53. The Dow had its first finish above 1900 july outnumbered losers 1,165 785 among 2,205 issues traded on the new York Stock Exchange Stock prices got a boost from Bonds Early in the week. Bonds climbed Mon Day before dealers started cutting prices during the Treasury department s quarterly financing auctions of s29 billion of notes and Market s sharpest gain occurred monday when rising Bono prices helped boost the Dow 16 Points. Stocks re treated a bit tuesday before advancing with interest rates rising and takeover enthusiasm waning the Market spent favourable View of the Economy devel Oping among investors. Takeover speculation continued to at tract interest but analysts said buyback programs announced by pc International and Goodyear dampened some of the tire & rubber was the most Active nose listed Issue falling h to 48.in an attempt to fend Oit a $49-a-9hare takeover bid by an group led by British investor James Goldsmith the company s Board authorized a buyback o20 million shares and said it was talking n Oil & boar f up to to c to potential buyers of its celery Gas International followed falling 2 to 81. Pc had risen sharply amid intense takeover speculation it retreated after it announced a 10-million-Sharc Stock buyback program and bought at Market prices about 4 million com Mon shares from investor Ronald pc Rel min who reportedly pocketed a profit of about $40 was third falling 2v, to 23ft, general motors added 1% to 72v1. Pm said thursday it is closing 11 operations that employ 29,000 Kodak Rose 1% to 62%. Kodak reported that third Quarter earn Ings Rose 7 percent re san1 i expect solid gains 1 in opera. Jinings Dur ing 1986 and 1987. Ism fell 2w to 121%. The influential investment firm of Goldman Sachs dropped the company from its recommended semiconductor issues Texas instruments jumped 6v4 to ii6h an National semiconductor advanced i a to rocketed 21mi to 241v4. The company agreed to be acquired by Amer ican Hoechst for 124 j a share. American motors advanced it to 3ftamid rumours that Chrysler was inter ested in buying a stake in the no. 4 . Automaker. An american motors spokes Man said thursday the company had no Thad any discussions with Chrysler. Chrysler refused to Carbide Rose in to 23v. Car bide said it would buy Back j2,s billion of High interest corporate Bonds and would Issue 25 million new common shares As part of a major recapitalization. Gillette jumped 9 a to met. Revlon group which Perelman chairs is re Mored to be interested in Gillette. Uni lever also was said to be a possible suit inc. 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