(January 23) – “Scudder Maxxum Co., a unit of mutual fund giant Investors Group Inc., plans to stop selling its commission-free Scudder funds by Friday,” writes Shirley Won in today’s Globe and Mail.

“Scudder Maxxum president John Wood said yesterday the decision was made because ‘there was a lack of interest’ in the no-load option, and assets in this group have shrunk to about $170-million.”

“Scudder Maxxum, however, has signed a deal to transfer the administration and client service responsibilities for the Scudder Classic Series of 10 no-load mutual funds to Toronto-based discount broker Charles Schwab Canada Co.”

“Investors in the no-load Scudder funds can hold, redeem or transfer them to the Scudder Advisor Series of funds, which are sold with a commission, Mr. Wood said.”

“Scudder Maxxum has been selling the so-called “load” Scudder funds through brokers and dealers since the fall of 1999. That happened after Investors Group and Scudder Canada Investors Services Inc. struck a deal to create a new fund company Scudder Maxxum.”

“Scudder Canada — a unit of New York-based investment firm Scudder Kemper Investments — was set up in 1995 as a direct seller of no-load funds and marketed itself as having funds with low management expense ratios.”

“But Mr. Wood said ‘the concept of a direct relationship between a fund company and the investor seems to have gone by the boards and that type of customer is at the discount broker firms where they can get some choice.’ “