The Markets November 27, 2006

Legg Mason Offers ‘R’ Shares for Mutual Funds

Legg Mason has announced it will offer "R" shares for 11 of its mutual funds, effective December 1, 2006.
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According to a news release, the move means investors in small- to mid-sized retirement plans will have the opportunity to invest in the funds. Legg Mason said in the announcement it already offers share-class pricing options targeted at medium- sized to large retirement plans, as well as micro-market plans.

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According to the announcement, R shares will be offered for the following funds:

  • Legg Mason Value Trust,

  • Legg Mason Opportunity Trust,

  • Legg Mason Growth Trust,

  • Legg Mason Special Investment Trust,

  • Legg Mason International Equity Trust,

  • Legg Mason Partners Aggressive Growth Fund,

  • Legg Mason Partners Large Cap Growth Fund,

  • Legg Mason Partners Appreciation Fund,

  • Legg Mason Small Cap Growth Fund,

  • Legg Mason Partners Core Plus Bond Fund, and

  • Legg Mason Partners Core Bond Fund.

Compliance November 21, 2006

FL Sheriff Sues Nationwide Over Fees

A Florida Sheriff’s Department has sued Nationwide Life Insurance Co., over allegations Nationwide’s retirement plan fees unfairly allowed the company to make a profit through a revenue sharing arrangement.
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The suit was filed by Orange County Sheriff Kevin Beary and charged that Nationwide, the agency’s former provider, would offer mutual funds to deputies and other investors only if the family of funds also paid the company a fee, according to an Orlando Sentinel news report.

That arrangement allowed Nationwide to pocket an exorbitant level of fees – money that rightly should belong to the investors, Beary’s attorney Roger Mandel told the newspaper.

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The lawsuit asks that Nationwide return to investors any profit made from charges to mutual-fund families since 1996, when the company is accused of beginning the practice.

According to the Sentinel, Sheriff Department officials became concerned within the past year after a consultant reviewing the department’s retirement plans advised the agency to ask Nationwide if it used revenue sharing.

The suit was filed in US District Court inColumbus,Ohio.

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