Earlier this year, The AmSouth Funds, the proprietary fund family of AmSouth Bank of Birmingham, Ala., erased the 12b-1 plan on several of the funds it inherited when it purchased First American Bancorp. in October, 1999, said Jim Underwood, a senior VP with AmSouth. Several of the First American Funds, with a collective $3 billion in assets, had 12b-1 plans, but AmSouth's own fund group lacked such fees. The decision was made to end the 12b-1 program when the funds were brought into the AmSouth family, Underwood said.
In July, 2000, Thurlow Capital Management opted to remove the 25 basis point 12b-1 fee which the $3 million Thurlow Growth Fund levied. According to publicly filed documents, the advisor ended the 12b-1 program as a concession to shareholders who had approved a new management contract for the fund raising the annual management fee from 1.25% to 1.90%.