Sept. 24, 2004 — Two Thompson Plumb mutual funds are slated to join the Dreyfus family of funds.
The boards of the Thompson Plumb Select Fund (THPSX) and the Thompson Plumb Blue Chip Fund (TPBCX) have approved the reorganization of the two funds to operate under the Dreyfus Premier name. Dreyfus will retain the funds’ portfolio managers.
The funds’ current shareholders stand to benefit from the move because it gives them access to Dreyfus’ marketing and distribution power, which should lower the funds’ expenses, said Thomas Plumb, a principal of Wisconsin Capital Management Inc., the funds’ investment advisor.
Dreyfus has guaranteed that the funds’ expenses ratios will not exceed their previous highest levels for at least two years after the completion of the reorganization, Plumb said. He noted that Dreyfus has reduced expenses by 21 basis points for the Dreyfus Premier Balanced Opportunity Fund/A (DBOAX), formerly the Thompson Plumb Balanced Fund, that Dreyfus took over from Thompson Plumb in January.
Because of their small size, the funds carry relatively high expenses, Plumb said. The $26.4 million Blue Chip Fund and the $27.2 million Select Fund have expense ratios of 1.20% and 1.30%, respectively, compared with 1.19% for their large-cap blend fund peers.
The Select Fund lost 3.6% and the Blue Chip Fund was down 1.2% this year through August, while similar funds eased 0.9%
Thompson Plumb expects the reorganization to be completed at the end of February, subject to shareholder approval.
Contact Bob Keane with questions or comments at: [email protected].