Another Ameriprise Question

[ejman]

I just learned that one of the funds I've owned for several years Columbia Acorn Z (which has performed very well - 14% annual return since I bought it in 2002) is now part of a wholesale transfer of asset management business from Columbia Management to Ameriprise Financial. Should I be concerned?

 

[audreyh1]

I just learned that one of the funds I've owned for several years Columbia Acorn Z (which has performed very well - 14% annual return since I bought it in 2002) is now part of a wholesale transfer of asset management business from Columbia Management to Ameriprise Financial. Should I be concerned?

I own this as well since late 90s. Currently I am grandfathered in on the lower "investor class" expense ratio (Z shares), but I can't buy additional shares through Fidelity.

I would say that as long as they retain the current management - Columbia Wanger Asset Management which is the original management since Columbia bought them from Liberty Acorn years ago - we are OK.

If the management changes or fees are changed, then I will re-examine. Keep an eye on what Morningstar has to say about this fund. I will too.

Audrey

 

[ejman]

Yes, I'm also grandfathered in on the Z class. I'm worried though about horror stories of fund holders actually voting in "higher fees" and other nonsense cloaked in pretty words. Are there any instances of shareholders actually voting down a fund advisor change?

 

[Life_is_Good]

My convertible securities fund is with Columbia Mgmt and I received the same transfer letter. I've had the fund for many years.

After looking at the expense ratio, I considered closing the account and investing in Vanguard's convertible securities fund. I found that it is closed to new investors.

Can anyone recommend a decent similar fund?

 

[audreyh1]

Yes, I'm also grandfathered in on the Z class. I'm worried though about horror stories of fund holders actually voting in "higher fees" and other nonsense cloaked in pretty words. Are there any instances of shareholders actually voting down a fund advisor change?

Don't know if shareholders have ever voted down such.

But if fees go up or other nonsense, then sell. I will if the management is changed.

It seems that what usually happens is some, more expensive class of shares is created that can be sold by the broker. So far that hasn't affected us Z class holders. In fact we got a benefit of lowered ER a while back, I believe.

We'll just keep an eye on it.

Audrey