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Scudder Gets Loaded, Kemper Name Axed

Venerable no-load fund family will add sales charges.

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Scudder Kemper Investments made it official Tuesday and admitted it's slapping sales charges or loads on its Scudder family of no-load funds. The firm, a subsidiary of Zurich Financial Services Group (ZFSVY), also said it will rename its Kemper line of funds, which already carry loads, with the Scudder moniker.

Existing shareholders still will be able to buy Scudder funds without a load, but as of December 29, the family's no-load shares will be off-limits to new investors. The changes will not affect participants in Scudder's AARP Investment Program. It was not clear from Scudder's filings with the Securities and Exchange Commission how big the initial and deferred sales loads, which are used to pay the financial advisors and brokers who sell them, will be. But Scudder's sister fund family, Kemper, which already is sold through brokers and advisors, charges front end loads of up to 5.75% for some share classes and deferred loads of 1% and 4% for others.

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Dan Culloton does not own (actual or beneficial) shares in any of the securities mentioned above. Find out about Morningstar’s editorial policies.