Vermont Bar Journal, Vol. 40, No. 2 Spring 2015, Vol. 41, No. 1 | Page 33

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THE VERMONT BAR JOURNAL • SPRING 2015

A Broken Marketplace

The nearby chart compares the growth of
$100 invested in the two funds. The Vanguard fund accrued 24% more wealth in
17 years! It gets worse. In case an Invesco
shareholder quickly discovers he or she has
gotten a bad deal, they face a 5% backend load to get out.
Let’s stop this nonsense! The solution
is very simple. Eliminate 12b-1 fees and
back-end loads and require front-end
loads to appear on statements as an explicit expense.
____________________
Dave Umstead is founder and president
of Cape Ann Capital, Inc. a fee-only registered investment advisor. Mr. Umstead has
been a professional money manager since
1978 when he arrived in the Boston area
from the faculty of The Wharton School.
He founded Cape Ann Capital in 1999. Jim
Jasinski, a former UBS broker, joined Cape
Ann Capital in 2009 and is now half owner
and CEO of the firm.

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