From Investment News
Dreyfus Funds director Joseph DiMartino remains the highest paid director of a fund company according to an InvestmentNews survey of the 50 largest fund firms. His pay rose 7.5% to $642,177, which is $300,000 more than his closest rival, S. Joseph Fortunato of Franklin Templeton. Assuming that they log about 200 hours a year, that equals over $1,000 per hour. They are far ahead of the norm, however. The average director at fund complexes managing over $25 billion made about $79,000 in 1998. The rate of increase has also slowed compared to recent years.
The cost of rising redemptions
Redemption fees are becoming increasingly common as fund companies battle market timers, as well as average investors who are no longer in it for the long run. According to Vanguard CEO John Brennan, the average shareholder's fund-holding period has declined from 10 years in 1990 to approximately two-and-a-half years today. The result is increased portfolio turnover, which means additional tax and trading costs to remaining shareholders. Fund companies are fighting back with penalties for short timers.
Additional charges for Bond
Fund manager Alan Bond, a regular on "Wall Street Week With Louis Rukeyser," has been indicted on charges of tax evasion. Bond has already been accused of taking more than $6 million in kickbacks from brokerage firms. Bond is president of Albriond Capital Management Inc. In recent years, he managed pension and investment funds for clients that include the National Basketball Association, the City University of New York and the Washington Metropolitan Transit Authority. Bond's attorney said his client has
pleaded not guilty to the expanded charges.
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