European Stars And Stripes (Newspaper) - October 18, 1987, Darmstadt, Hesse Page 20 the stars and stripes sunday october 18,1987 Doyle investor s guide by Bill Doyle q. 1 flit to understand Jour id a inf opposition id my lung fond Jib i plans. When fund he such plan. Its can Tat � very Small part of he fund s assets for distribution purposes Oicle More fund share. The Sale of More shares makes Mutual fund and better. What s wrong with that a. First off you re ignoring the fact thai a Mutual fund is owned by its shareholders no its management. The fund s assets belong to the share holders and should be used Only for purposes hat Benefit share holders. Your big mistake is in equating Biasco with belter where Mutual funds Are concerned. There is absolutely no evidence that investors fare better with bigger funds than with smaller funds which often turn in much better performances than the big ones. There s no doubt thai the people managing a Mutual fund Benefit a the fund becomes larger. Thai s be cause management collect an an Nual fee usually called an advis Ory or management fee based on the sic of the fund s assets. The bigger the fund the bigger the fee management collects. Shareholders the owners of the fund gel no part of that fee. Also what you Call a very Small part can be an annual charge of As much As 1.25 percent of the assets of some funds with lib-1 plans. Summed up when a fund has a i2b-l plan its management can use shareholders Money to pro mole the Sale of new shares and increase management s profits. Fortunately the investing Public has a wide Choice of Many Mutual funds which do not have i2&-1 plans. Q. You recommend True no Load Mutual funds. Those with no commission charge at the time of Purchase no redemption fee or Eon Vij fint deferred sales charge which you Call Rev end loads when shares Are cashed in and no ub-1 plan Bui would t it be leu costly in the Long run to invest in a Toad Mutual fund mid pay an 8.5 percent commission at the time of Pur Chase rather lion latest in a no loud fund which has a 0.87s per cent monthly management fee a. The management fee you quote would total 10.5 percent on an annual basis. No Mutual fund has a management fee that High. The average fee is about 0,5 per cent of fund assets annually. As has been stressed in this space Mutual funds have other operating expenses a Well run fund can keep total expenses below three quarters of 1 percent annually. If you have a notion that a Load fund with an 8.5 percent commis Sion charge does not have annual expenses you re very wrong. All Mutual funds Loaa and no Load have management fees and other operating expenses. Those annual expenses referred Loas expense ratios vary from one fund to another and on average expense ratios of True no Load funds arc Dohig Harthan funds. Camu of a i nmn t. But to can or Whf am Only arcu0icxi a u two Cut a Iff business news panic Selling drops Dow 235 in biggest weekly Point loss new York up stocks Plum meted last week As investor anxieties about inflation and rising interest rates spurred panic Selling and gave the mar Ket some of its worst losses Ever. In its biggest weekly Point loss Ever the Dow plunged 235.47 Points or about 9.5 percent to 2246,74. The loss sur passed the previous week s previous re Cord drop of 1 so. 78 Points. Since the Dow hit a High of 2722.42 August 25, in has lost 17.5 Percinth of its value. Losers overwhelmed gainers 1,942 138 among the 2,183 issues traded on the new York Slock Exchange where volume totalled 1.124 billion shares compared with 878.7 million a week ear Lier and 597 million the year before. Broad Market indicators plunged the new York Slock Exchange composite Index dropped 15-51 to 159.13 while Standard poor s 500-Stock Index plunged 28.37 to 282.70. Secondary and tertiary issues joined the rout. The american Stock Exchange Index plummeted 23.26 to 323.55 while the National association of securities dealers Index of Over the counter stocks fell 32,04 to 406.33. Stock pulse Sion at ten m a com so him Injo motion tie not Eow Tion Iep no c4l i sch tip on of 4bqinl. 2�47nl tb3nl Sony Al h7 n a 78 9�l two Lawni. 7.159640.54 307 3h5� 7,64 143tli05 147b i&52 do fit 12 27 12 bl1b7 5b4 &12cei in 73 707 64t 572 to 7.21 us 54 ii i41 tit tit 71 7 57 5h � 5w657 t u so sic 5u 5� might see Ehul swum Kim dip in s.5 30s 21 0 1j 795 120 55 of 30.0 1.2 4.m 17.0 1.93 Sibbs 1.0 14 54 4 44 17.v4 14.14 13 &2 1477 56 7.01 is Ion l2ib3u i5ui9� �ibnl10imnl 3945 92h 7.sb 7.91 10.70 3i.e 15.12 to 07 20 a 21.43ubimoi 11 52 is 44 134114.13 14.20 14. B3 1332nl.i1s8nl l&banl.11 7s h l. ?4 39 n t to Wal u 52 no Lottel 783hl 13ukli6hhl 137bxl 727nl a Wivi com g so Rah Oro rat pm 1101 lira1jbui9 it 14 1217 7m &30 ibb 111 1043 140 2bii no 11 m 17 11 i j7 idwii1siouiu7 the catalyst for the week s worst losses was the government a Cor wednesday that the nation s Trade deficit had narrowed in August but not As much As the financial markets had hoped for. A $15.7 billion a Cicil in International Trade Raj cd in a fever Pilch Wall sir Cefi fears of inflation and rising interest Rales. The Dow plunged a record 95.46 Points wednesday 57.61 Points thurs Day but broke it Friday with a plunge of 10_s.j5 Points. Shortly before the close Friday he Dow was off about 130 Points. The emotional extremes the Market can go to were never better exemplified than by Friday s action said Trudy la timer analyst at Josephthal & co. Last week s Selling reflected Wall Street s gathering pessimism about rising interest rates inflation and the possibility thai economic growth will prove slower than originally projected said a. Mar shall Acuff jr., portfolio strategist at Smith Barney Harris Upham & co. Heightening investor fears was a 95.23-Point Sharp drop in the Dow transportation average. For investors who fal Low the so called do theory a confirm Ami cd poll to arts a b Vel com e be Yew b12.wh 431, s 2.37 1bo i 807300 it 7 12.900 Mil til i. 94 624.700 21k b7s.600 m Jib 100 35h 47b-7do b such Chi Tell la Wingle mud i t19 air a it Tim dig 7tl -4m.w3 22% 400,000 jh3j7.j00 us 055 970 1 80 m,0 1.0 0 33 57.0 1. 90 12.0 c22 21,1 a spoil a Ibert us a Maut a in us Arwi Cobiro Isic cum in Cut Nam c40h Chen Earl f e Ford Diann a a Fco a cont a pro a my by 251 he 14 105 1 to 93h son a i e106 a 17 0 it 5 74 5 t 9.2 24.0 06 3.3 2.1 1ts 169 8 00 21.0 b4.1 2.3 0.9 77.0 3.e him ii in Shii. Us out and Slu Sim it s it la Isa of inf 5mi in Tylli Barf a co fond Piagni of s1f Ujj Sif or of Mun 1i7b12.79 13uhlloffint 13 43 . S2 b4 j3 m 1 92 13 co 7� 531 th1i27im2 7si 11,75 Al 1399nl 7.s3 Mil limn. �.7bnl it 11 4 a h l id4snl 60 Seq ire do Ikhi. A tout i0q5ml to Mihili Colury Rohnl tit b,7 Olwin i575nl. It Bod is a Etc grow i Natl tie Intuit it Unius of 1 von Ilrine in of Imit new b 01 h l 13ciul 10 s2 n less he a he m.x1 10 12 7b4nuiionu Hunt � 7nl 4 76 io7nl Sun inn Unm Fiata a cum by cd com inc out a oo7 a Hun in n sae but Fdl North bioinl.u69hl 1j4b11msjbjnl j1j 7 711 by 5w 141 i7j1 1bss il711in4is 30w. Philip Morris dropped to to 102k. Scars fell 6v, to 4lvi, Dow Chemi Cal Slid 13 loss and Dupont plunged 12 Newmont mining fell i6tt to 4sh. A Delaware court turned Down Ivanhoe partners bid to rescind consolidated Geld Fields plus recent purchases of Newmont shares. Digital equipment fell 13 10 172u. Its third Quarter earnings issued after the close wednesday came in it the Low end of analysts expectations. Com aaa Motl if town ust St 1b8sn.l1boin1 17 b7 . 10un.l. 100tnl 03 no. 1whl. Id 1014nlb-1bnl. 10 61 n i.vlu.1jolfuodl us i 111inl v4i int 8 71n to Ltd oth i win b 41n-l us Mcc aaa top m it Nam hit fid Bon St full us tit not to Sun Xiv Mun in Mun in Munuel Haj 1j1 Mai so 949nl v71nl � hl724ni, i013hl m�i.3hwm-l. Tonj in Jinhu. In in a Elf till i us on. 1i12ni 1351143813sou 77 13h1470 ism us 15 to l 12 not u of us of tit Wahneita ii159nl 5-ksnlmj1dml 1&53hl 142 2ft he 02 blk 17 Kwh s3 Una 14 2nl 44 04 n 1 49 in i. 17 7t Tudor a pop cot we to Thura q hmm 14,1 inl.1s7bnl 1bi7nlicwxi 1345kl i494ml. 150 isf7hj_i1bhl 755 ml12mhl 13 10 43 t.l5h let 4 71 hl.z3.01n1_ Kimku 571 710 571 157 120 i n l110tnl 511 to 11ui4jo 14mnl 11uhl.1ij17nl. Iho Nieft if Ftp Oku r i225nlomt i i1j4nl s7kl�7jafl 704ni n it of isl
