Fiicuwt' US Sanctions Against Syria Show

— MANCHESTER HEBAl n y n d a v Nov U 1986 ‘Option income’ mutuai funds have poor average CONNECTICUT WEEKEND PLUS QUESTION: Sex sentence Housing boom Noisy rooster I ’m 56 and re and capital gains distributions — If you can switch to another ANSWER: In one of two ways — QUESTION: My sister put $1,000 tired on medi than other types of mutual funds. mutual fund in the same manage perhaps both. into a mutual fund and received draws crItiQlm sends ripples leaves a gift cal disability. Right here, it must be pointed out ment group without what you call a If the mutual fund has a $915 worth of shares. She says she Because my that lots of mutual funds sell “ penalty” — actually a redemp redemption fee — a “ rear-end paid 8.5 percent commission. I say h i ... p a g « 4 ... page 18 ... magazine Inside disability insu Investors’ covered call options on small tion fee — you would be wise to do load,” because it’s a kick in the she paid almost 9.3 percent. Who’s ■I ii H rance and com portions of the "stocks they own — just that. rump to shareholders who cash in right? pany disability Guide usually with good results. How Considering that fund's lacklus — the fund’s underwriter pays pension will de ever, at last count, there were 20 ter performance, you might wflnt commissions to brokers who sell ANSWER: You are. The maxi option income funds specializingin shares. mum commission charge allowed crease substan William A.- Doyle ' to redeem your shares, swallow the tially when I that type of activity. On average, redemption fee and put your ' If the fund hasal2b-Iplan, which on the purchase of mutual fund they have not done well. money into a true no-load mutual shares is 8.5 percent of the total turn 65, my wife increases the bite fund manage A A B Your numbers show that the fund. amount paid — $85 on $1,000. and I have been ment takes out of the fund’s assets option income fund in which you on a steady basis, the brokers investing in an “ option income” dividends. But the values of their have been investing, indeed, QUESTION; A broker told me share in that outrageous charge. But that $85 works out to just mutual fund recommended by a shares often have declined. As a “ headed in the wrong direction” broker. that no commission will be taken The moral is simple. Read the short of 9.2 percent on the $915 group, option incdme funds have during a period in which stock out if I invest in a particular mutual fund’s prospectus and steer clearif worth of shares she r eceived. So. Our initial investment was turned in poorer “ total perfor prices and the values of most fund. If this is true, how does the it has a commission load al the the commission was 9.3 percent of $5,002.68 on Feb. 2, 1985. We have mance” — change in .share value, mutual fund shares went generally broker make any money on the time of purchase, a rear-end load the money she invested, after the since invested $3,700 more and adjusted for reinvested dividends higher. deal? and/or a I2b-1 plan. “ load” was taken out. have reinvested $1,104.14 divi dends, making our total outlay $0,806.82. Our latest statement shows we own 1.158.367 shares. Saturday, Nov. 15,1886 30 Cents Today’s paper lists the shares at N $7.79, meaning the value of our LOWEST PRICES..:^.. investment is down to $9,023.75. We N seem to be headed in the wrong direction. THE EXTRAS YOU PAY FOR AL SIEFFERTS There was no commission U.S. sanctions charge when we invested. But. if ELSEWHERE ARE FREE AT we switch out of this fund series, there will be a penalty — starting at AL SIEFFERTSn 6 percent the first year, then • FREE DELIVERY 0 declining one percentage point a against Syria year. 0 • FREE NORMAL HOOK-UP What is your opinion of option income mutual funds? • FREE REMOVAL WHYPAY ANSWER; First, let’s explain • LOCALLY OWNED show ‘outrage’ how that type of mutual fund operates. • MEMBER, NATIONAL It uses the money you and other By George Gedda involvement in Syrian oil opera investors pay in to buy shares of BUYING GROUP FOR GIANT The Associated Press tions “ inappropriate under these V dividend-paying common stocks on PURCHASE POWER!! circumstances.” which call options can be written. It WASHINGTON - President The U.S. companies involved in V sells "covered” call options on ttie Reagan imposed additional diplo oil exploration are Pecten Syria stocks it owns and collects premi U....BEST SELECTION! matic and economic sanctions Petroleum Co., a wholly-owned ums on those sales. The objective is against Syria on Friday as an subsidiary of Shell, U.S., Marathon Oil. Several U.S. oil service con to increase the fund’s income and REMOTE CONTROL MODEL expression of "outrage” over al the dividend's it pays to leged Syrian involvement in inter tractors also have a presence. shareholders. ti'liji national terrorism. At the State Department, spokes In theory, that’s great. Most Reagan banned the sale of all man Charles Redman said the option income funds do pay high aircraft and related spare parts, administration does not believe the prohibited U.S. financing of ex measures will have “ an immediate ports to Syria by the U.S. Export- and dramatic” effect. Their pur Carbide sale Import-Bank, terminated a bilat pose, he said, was to isolate Syria f a m o u s m a k e f a m o u s m a k e I ISHER f a m o u s m a k e eral air transport agreement with further from the international 13" DIAG. 19 DIAG • AM ' M 19" DIAG. Syria and ordered a reduction in community of nations. • d u a l i: ASSf I ' L w orked out ele c t r o n ic tun er the U.S. Embassy staff in Damas Announcement of the action was • UJl'N l ABL E timed to concide with the arrival . uPE AKCBS cus, among other actions. COLOR here Friday of British Prime DANBURY (AP) — For the COLOR COMPAQ COLOR Reagan’s spokesman, Larry Minister Margaret Thatcher, fourth time in 10 days. Union Speakes, also said the goverment TV whose government broke relations Carbide Corp. has announced a STER ^ has informed U.S. oil companies with Syria last month after a plan designed to reduce heavy that it considers their continued FAMOUS FAMOUS FAMOUS British court directly implicated debts and strengthen the chemical 16R 149 2 4 ^ Syria in the attempted bombing of giant’s financial position. MAKE MAKE FISHERl MAKE an Israeli airliner last spring. On Thursday, the company said Reagan and Mrs. Thatcher will it has reached a definitive agree meet Saturday at Camp David. ment to sell its worldwide agricul Textile “ We believe further steps must tural products business to the U.S. be taken to discourage such Syrian subsidiary of Rhone-Poulenc S.A., behavior and to express our EM a major French manufacturer of outrage and that of the American EAST chemicals and pesticides, for $575 imports people at Syrian sponsorship of this million in cash. attack and its long pattern of The sale does not include the RCA ZENITH HER support for terrorism," Speakes H*raM|gieloByTU«k«r agricultural production facilities 25" DIAG f i s h e r .100 WATTS ____ t 9 ’ DIAQ. • DUAL CASSETTE said. of Union Carbide India Ltd., the , a m /fm e . AM/FM He said the measures will send a StitB police divers prepareto search the Connecticut hIs oxygen tank, while Trooper John Duley hoists his company that owns a closed COLOR COLOR . d u a l c a s s e t t e • turntable limited "clear and unequivocal message to River beneath the Pounders Bridge for a suspected tank over his back. An unidentified Eaat Hartford pesticide plant in Bhopal, India. STEREO Syria: Its support of terrorism is suicide victim late yesterday morning. Sgt. Grant firefighter, right, looks on. 4 On Dec. 3. 1984, deadly methyl TV unacceptable to the international Qouid. lift, helps Trooper Richard Nichoiaon secure isocyanate gas leaked from a tank rmm BOX Bv Tom Roum community of nations.” 5 at the Bhopal plant, killing 2,000 The Associated Press On Monday, the European Eco people and injuring thousands nomic Community imposed an 3 ^ 699 WASHINGTON - The United arms embargo and other sanctions more. FISHER 99 FISHER States and Japan reached agree Fruitless search follows Jump report The exclusion of the Indian unit against Syria, steps Speakes said WIRELESS REMOTE! means that "the liability asso ment Friday on a new pact that will the United States welcomes. sharply limit Japanese textile ciated with that (Bhopal) remains Following the British court deci I CAST HARTFORD — State police divers poooible suicide attempt from a motorist at safety officials from East Hartford, but with Union Carbide,” said James exports to this country over the sion last Oct. 24, the United States about 9 a.m. Friday morning. found no trace of a victim. next three years. •esreUng the cold waters of the Connecti Wilbur, vice president of Smith showed its support for Britain by The motorist, traveling in the westbound The suspected victim is 20 to 2S years old, Textile and apparel shipments cut ttiver found DO trace of a woman Barney, Harris Upham and Co.

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