The Hodges Fund
, a mid-cap blend of growth and value stocks, has converted into a no-load fund because doing so allows it access to online investing services such as Schwab OneSource
, DLJ Direct
The Dallas, Texas-based fund carried up to a 2.5% load until last month. The Hodges Fund has also cut its 12b-1 fee in half to 25 basis points.
The broader exposure through services such as Schwab OneSource was attractive because of the direct sales component instead of through a financial advisor said Nick Kilsby
, a spokesperson for The Hodges Fund. "It also makes it cheaper to own."
Before the fund converted to a no-load fund it was sold through brokers mostly in Texas where Don Hodges
, the fund's founder, is also founder of First Dallas Securities
, a mid-sized Dallas brokerage house.
"In view of our performance from inception, we felt that the time was ripe to broaden investor access to the fund my making it even more competitive, and giving it national prominence," said Hodges, the co-manager of the $37 million fund in a statement.
To increase recognition the fund will widen its marketing plan, Kilsby said. This will include advertising and direct mail. The marketing efforts will target people with a somewhat conservative approach to investing. The Hodges Fund is also available to customers directly through its own web site.
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