Fairholme Becomes Largest Private AIG Shareholder

Bruce Berkowitz's Fairholme Capital Management revealed this week in a 13G filing with the SEC that it is now the largest  American International Group (AIG) shareholder after the U.S. government.

The firm's 15 million shares are worth approximately $600 million as of April 15. The next largest shareholder, Vanguard, owns about 6.8 million shares through various mutual funds.

Fairholme also owns convertible debt and other bonds in the firm.

Earlier this year Fairholme revealed big positions in other recovering financial companies including  Citigroup (C) and CIT Group .

Berkowitz, who first disclosed the stake in AIG in public interviews in March, said he began acquiring shares in the company in the second half of 2009 when cash flows started to turn positive.

The stock has rallied 32.5% this year compared with 9.2% for the S&P 500 through April 14.  Fairholme (FAIRX) is up 18.3% for the year to date, making it the second-best-performing fund in Morningstar's large-blend category.

TD Ameritrade Hikes Fund Platform Fee
Online broker  TD Ameritrade  is increasing its No Transaction Fee fund platform fees to 40 basis points, or hundredths of a percent, from 35 basis points, according to news reports. The move puts TD in line with the fees at  Charles Schwab's (SCHW) OneSource and Fidelity's FundsNetwork.

MFS Chairman Stepping Down
On July 1, Robert Manning will take over as chairman of MFS Investment Management for Robert Pozen. Pozen, who will become chairman emeritus, said he will retire from the firm at the end of 2011.

MFS also announced that president Michael Roberge will become the firm's new CIO in charge of the investment management division. Roberge, who had been CIO of U.S. investments, takes over from Manning.

Etc.
PIMCO launched its first equity fund on April 14. PIMCO EqS Pathfinder , run by two former Mutual Series managers, will invest in global equity securities as well as distressed debt. For more information on the fund, please click here.

American Century launched American Century Strategic Inflation Opportunities on April 30. The fund invests in a mix of U.S. inflation-indexed securities, commodity-related investments, and non-U.S. dollar investments in pursuit of its goal to protect investors' purchasing power.

Virginia's 529 has cut its plan fees by 20%. The Virginia Education Saving Trust reduced its administrative fees to 20 basis points from 25 basis points on April 1.

Royce announced that George Wyper, formerly of Wyper Capital Management, joined the firm as portfolio manager and managing director on April 1. He will focus on international markets.

Effective March 29, various RiverSource funds will merge. Some are related to Ameriprise's 2008 acquisition of Seligman. RiverSource Partners Aggressive Growth will merge into  RiverSource Mid Cap Growth . RiverSource Partners Select Value will merge into  RiverSource Mid Cap Value . RiverSource Partners Small Cap Growth will merge into Seligman Frontier . RiverSource Partners Small Cap Equity will merge into Seligman Smaller Cap Value (SSCVX).

Cliff Gladson, manager of various USAA bond funds including  USAA Tax Exempt Intermediate-Term (USATX), stepped down to become CFO of the firm. Regina Shafer will remain as the funds' sole portfolio manager.

Charles Song and David Kivell replaced Damon Andres and Babak Zenouzi as comanagers of Delaware Global Real Estate Securities .

Frank Biondo is no longer comanager of Aberdeen Tax-Free Income (NTFAX), leaving Lori Cohane as the fund's sole portfolio manager.

By the end of May 2010, Michael Generazo will replace Eleanor Lynch on the portfolio-management teams of  DWS Managed Municipal Bond (SMLAX) and  DWS California Tax-Free Income (KCTAX).

Shareholders of Fidelity Select Environmental (FSLEX) are being asked to vote on changes to the fund's investment policies. The amendment will allow the fund to invest in businesses related to alternative energy as well as those related to environmental support services. If approved, the fund will also change its name to Fidelity Select Environment and Alternative Energy.

 BlackRock Aurora  will merge into  BlackRock Mid-Cap Value (BMCAX) by July 2010.

Effective April 15, 2010,  Absolute Strategies (ASFIX) will close to new investors.

Fund analyst David Falkof contributed to this report.