TheSalt Lake Tribune BUSINESS Don’t Begrudge Rewards Earnedby Fund Managers The cornucopia image so closely associated with the American celebration of MUTUAL FUNDS iving makes an apt symbol for mutual funds,too. To fund investors,fund managers and the U.S. and world economies,funds have served up a bountiful financial harvest. Put fundsin thetextbooks as classic “positive- But Whitmanstill maintains, “The publichas always for a paltry 3 percentof the to- the investor gets reallypro- tal'in all long-term (stock and bond) funds. Atthat same time,fundinvestors had nearly twice as much moneyin thestaid cate. gory known as hybrid funds stock-bond mixtures oftendismissed in those days as hope- CHET CURRIER sum”proposition. $6.4 trillion as of the end of September from more than $7 Between accolades, some people grumblethatthe rewards to investors are less than they could be, because the managers take such a big helping for themselves. “Enormous amounts of the expensespaid by fund shareholders are not benefiting those very same shareholders,” says John Bogle,retired chiefexecutive of oneof the trillion atlast year’s peak. Still, funds remain a rich sourceofcapitalto help finance notonly businessformation and expansion but other purposesas diverse as home mortgages, charitable giving and the borrowing needsof national, state andlocal governments. With their spectacular growth — from total assets of less than$1trillion at the end of 1989 andless than$100 billionat the end of 1979 — mu- largest fundfirms, the Van- guard Group, and a most unretiring industry critic. “In effect, high fees are payingfor pie profits to fund manag- tual funds rocketed pastrivals suchas banks and ii ce companies ieaca!“the: The clientele doesn't behave likea group with agrievance. According tothe Investment CompanyInstitute (ICI), 93 _jargest financial intermediary —_in the UnitedStates,” in the wordsof the ICI. million people from more than half ofall U.S. households own shares of mutual funds. Thatis up from 83 million in similar Fundinvestors and fund managers aren’t as reckless with the moneyas they are sometimes portrayed. Yes, they wereeagerparticipants surveystwo years ago. After a long bear marketin stocks, the amountinvested in US.fundsofall typesslipped to in whatis nowcalled the“Internet bubble”ofthelate 1990s, whichhaslong:since blown Sunday, November 25, 2601 away. But when I checked in May 2000,just a couple of monthsafter what proved to be the bullmarket top, specialized technology stock funds accounted lessly outof date. Since then, conservative fundsofthatilk have becomea lot more popular again. Thebear market has taken a toll at fund companies. Firmssuch as Fidelity Investmentsand T. RowePrice GroupInc.havelately been cuttingjobs. Price's earnings for the third quarter were down 27 percent from the comparable period a year ago. Amvescap PLC, which operates the AIM andInvesco fund groups, had a 69 percent thirdquarterdecline. Thestock of T.R. Price Associates, oneof several publicly traded fundfirms,hasfallen 18.2 percent in the past year. Evenso,it has averaged.a 21.5 percent annualreturn over the past decade, more than double » the 10.4 percent annual gain of the Standard & Poor's 500 Index. Running a fund company “allows peopl ungodlyrich,” say Whitman, the blunt:spoken tollbooth on the George Washington Bridge.” beén taken advantageof. With mutualfunds, for the first time tect Sincethe formatof U.S. fundswaslaid outin1940 legislation, scandals in the indus try have been remarkably few. If there wereany workable wayto exploit an American mutual fundfor pillage and plunder, we surely would haveseenit by now. Jamas muchin favorof lowerfees as the next guy. But it is problematic to begrudge a businessits profit whenit provides ally useful product ‘THE DALLAS MORNING NEWS coach for advice. For inspiration, you could readthatlittle book about mice : chasing cheese. Or you could head for the supermarket, where youwill find the ingredients for magic spells to protect your job, change careers,evengeta raise. “Tt’s a witch’s form of prayer,” says Lexa Rosean, a Wiccan high priestess whose new book, PowerSpells, is now profit motive, competition abounds among fund manag: ers. Somefirms,sucha: guard and TIAA-CREF Corp., makeabig issueoffees. Soin. avethe option ofputting their moneyin solid funds fromwell-regarded managers who collect lot less in fees than the averageprovider. If investors couldtell fund managers what the fees ought to be, there wouldcertainlybe fewer funds to choose among than wehave now. Whatever wedoin the nameof helping investors,let's be sure we don’t break the cornucopia. berg-net. food) in their endeavors. And the A big part of that is casting spells. ing of psychic 14.53 14.76 15.28 in the 10 largest metro areas. MMDA* 1.23 6-months 1-year 2-1/2-year 5-year 2.01 217 2.83 3.87 127 2.14 Yields on biggest 2.02 5.29 217 5.55 2.83 5.66 money funds individuals with their current seven-day annualized yields. This Last 6 mos. Fund (ranked bysize) Fidelity Cash Reserves Vanguard MMR/PrimePort Schwab Money Market Fund SchwabValue Advantage MF Smith Bamey Cash Port/Class A Merrill Lynch CMA Money Fund MorgStan Dean Witter/Active Assets UBSPaineWebber RMA MF/MM Port MorgStan DeanWit/Liquid Asset Centennial Money MarketTrust Prudentia)Command Money Fund. week 2.39% 2.40% 2.00% 2.28% 1.98% 2.51% 2.38% 2.14% 2.22% 1.95% 2.24% week 2.52% 2.46% 2.10% 2.37% 2.07% 257% 247% 227% 2.32% 2.04% 2.31% ago 4.42% 450% 4.05% 4.38% 4.07% 4.37% 4.49% 4.13% 4.41% 4.04% 4.24% Wells Fargo Cash Investment MMF SSgA Money Market Fund/ClassA Evergreen Money Market Fund/ClS Avg.taxable moneyfund Tax-free funds 2.33% 2.23%. 1.36%. 1.91% 1.32% 2.43% 2.26% 1.53% 1.96% 1.38% 4.17% 4.08% 3.53%, 3.85% 2.58% Alliance Capital Reserves ‘necessarily “People have been setting very Exhaustive’researchledherto the “You don't eve in magic forit to work, but youhave to believe in yourself andwant it to work.” It works, she maintains, for three reasons: Offerings to gods and goddesses summondivine energy, the in- gredients have magical propertit andpeople whocast spells are focu grocery store. Eye of newt, she con- cludes, is a marshberry;tongue ofdog actually refers to a vanilla leaf. A bag of Earl Grey tea contains bergamot, which helps protect you. Many common foods, from lemons and 3.84 5.96 Hereare the 15 biggest money-market mutual funds opento find herbs and off-putting ingredients like eye of newt. simpler 13.67 13.84 17.36 Bank Rate Monitor's weekly survey of the 10 largest banks and S&Ls - Date This week seanhas writtenfive of them. witch.” lize everything from pagan rituals to 8.54 8.59 9.65 “Average has changed from a fixed rate card to a variable rate card ‘food results,” she says. “So [lookedat the older methodsof tribal shaman rites to astrology and 547 534 7.30 Bank deposit yields tions that relied on incense, hard-to- doing magic, called kitchen witchery,” she says. “I started to think about how people could perform available. 6.37 6.01 741 cinnamon to olivesandroot beer, pack a powerful paranormal punc h. If you buy into these notions, all you need is a cookbook. Beginning with The Supermarket Sorceress, Ro- Whenshe becamea witch in theearly Satanic ritual. “It’s not whata lot ofpeople think,” “You're petitioning gods and goddesses to grant youfavors, Justas an- 6.90 6.58 7.74 1.48% 1.61% Sources bankrati.comandl iMoneyNet, Ine the stereotypical brooms, warts and Wiccans, Rosean says, incorporate ancientbeliefs and practices harnessing the powerof the Earth. They uti- This week Lastweek Lastyear 1980s, Rosean says, she found that people were put off by magic concoc- using Others : Credit Car Personal card* 30-year 15-year Ani * Monay Market Deposit Accounts News golumnist. Ren be reachedat ecurrier@Bloom she says. “I'm a real witch, but I’m always compelled to say I'm a good Mortgages Date place. Thanks in largepart to the NewYork. “It's like having a wholives in New York, has written five books about witchcraft — a cheerful, positive witchcraft devoid of loan-to-value. Car loans are for 20 percent down, 48-month, newcar. Personal loans are for $3,000 24-month unsecured loan that wins favorin the market- managerofthe $2.3 billion Third Avenue Value Fundin ingredients themselves have magical properties or energies.” Rosean, an astrologer and psychic Consumer loan rates Bank Rate Monitor's survey of the 10 largest banks and S&Lsin the 10 largest metro areas. Mortgages are conventional loans at 80 percent ta: Witch Brews Up Recipes for the Workplace DALLAS — If you are worried about. coping with this economic downturn, you could a career Money Scoreboard ing their subconsciouson the task at hand. “The ritual itself triggers or harnesses your ownwill,” Rosean says. Previous recipe books concentrated on relationships, love, andselfimprovement. In PowerSpells,. the 3.69% Gannett News Serve 1 int an priestess gets down vs for protection), garnishedwith salt, olive oil, and lemon juice(for protection andpurification). “Use a green orblue or white plate for best results,” the book adds. “Before eating, visualize yourjob and your income being protected, sur- rounded bya circle of white light this spell is most effective when performed [eaten] on thejobsite.” The book also includes’ spells for networking (cinnamon, dried rose petals, and glitter), getting a raise (bake two. loaves of bread — one for you, one to leave undera‘tree for the goddess) and. changing careers (pimiento, pine nuts, and eggplant). Ken Roesbery Grocery Guru We've teamed up with the Grocery Guru to make saving and shopping even easier. The Salt Lake Tribune’s and Deseret News’ online Local Grocer now features Ken Roesbery, the Grocery Guru! Each week, the Guru sharesall the tips, strategies and advice you need to get great deals, Just go towww.sltrib.com or www:deseretnews.com andclick on the Local Grocerlink. In addition to all the Guru's great information, you'll find many other convenient and useful tools. This week's _ Shop of the Week: red /ocal gr Albertsons v" ee is Dan’s Macey’s ae Food 4 Less Smith’s Meyer SuperTar; VGrocery Guru's Mealof the Week Fach week mie ous Prereeee special meal plan with a savings of 70% or better. Checkit out! Coupon index Find out where to locateall the coupons you need to get the Guru's great deals. UVWatch the Guru See the Grocery Guru every Wednesday morning on KTVX Channel 4's Good Morning Utah at 6:15 am. and 6:45 a.m. wth WVListen to the Guru full hour of deals Join the Gurufora Saturday mornings from 7 to 8 a.m.On KALL 910 AM. KAI For more information on becoming a featured local grocer, contact Corey Headmanat (801) 237-2741 or cheadman@nacorp.com fNa) Get sitrib.com \g? Haool eSaltLakeTribune to S. So how do youprotect your job? Everythird day: eat mixed-berry yogurt (yogurt represents sustenance, berries ward off envy) and a green salad with r hes (greensfor pros- -.com Deseret News