Insight May 2003 Monthly Update

“This issue of Insight updates our ongoing coverage of mutual fund sales loads and multi-class structures. Last June we reported that the deferred sales charge (DSC) format which dominated the industry during its biggest growth spurt was giving way to front-end loads, often set at 0%. Current data shows the trend toward front-end loads is definitely entrenched and attracting both growing interest and market share. Figures 1 and 2 show where the money is. Thanks to the legacy they built up during the boom years, DSC funds still held the lion’s share (71.1%) of total load assets under management at March 31. But front- end loads have the momentum. Their 28.9% share was up from 21.1% at the end of 1998. That’s a 37% gain over 4.25 years. To put this into perspective, there was $3.76 in DSC assets for every $1 in front-end holdings at the end of 1998. By the end of this past March, that was down to $2.44.”