In a move that is more the exception than the rule, the $2.3 billion Fremont Funds of San Francisco has terminated the 12b-1 plan on three of its 11 no-load funds. The change is reflective of Fremont's evolving distribution strategy.

Fund advisors have used 12b-1 fees since 1980 to offset the costs of distributing and advertising each fund. They are also used to pay ongoing commissions to financial intermediaries who have sold and continually service fund accounts for investors.

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