1]Conventional share classes include a purchase fee to defray portfolio transaction costs
and enable the fund to more closely track its benchmark.
Moreover, shareholders will not bear any expenses associated with the liquidation of the Funds other than bearing indirectly the portfolio transaction costs
incurred in liquidating the Funds' assets in advance of the Funds' closure.
The Report of the Mutual Fund Task Force on Soft Dollars and Portfolio Transaction Costs
represents the conclusion of the first phase of the task force's work.
The November 11, 2004 Report of the Mutual Fund Task Force Soft Dollars and Portfolio Transaction Costs
recognized that Section 28(e) is an important element in maintaining the flow of information to investment managers, and recommended only modest changes to the existing regulatory regime applicable to Section 28(e) (or "soft dollar") arrangements.
In the first, it will consider mutual fund portfolio transaction costs
-- including directed brokerage arrangements, soft dollars and disclosure.
Of course, actual liquidation expenses, market values and portfolio transaction costs
may vary, affecting liquidation proceeds.
Expense ratios exclude portfolio transaction costs
that on average equal 43 percent of the total expense ratio.
2420, including the structure of portfolio manager compensation, portfolio transaction costs
, revenue sharing arrangements, and fund brokerage practices.
3% and incurred portfolio transaction costs
that can be fairly estimated at perhaps another 1.
The new purchase fees on the three funds are more reflective of our projected portfolio transaction costs
," said George U.
Such investors -- to the extent that they redeemed fund shares -- had the potential to saddle the Fund's long-term shareholders with excessive portfolio transaction costs
Bogle, who also noted that such flows "would certainly saddle the Fund with excessive portfolio transaction costs
that should not be borne by shareholders who are with us for the long term.