First Tennessee Bank is waiving fees on its First Funds Tax-free Portfolio fund for the rest of the year to lure trust and institutional investors.
To get the word out, the bank sent press releases to publications in its markets, and its sales representatives also tell clients about the fee waiver. The fund also is free of Tennessee's tax on dividends from mutual funds and investments in companies outside the state.
Doug Kelso, senior vice president and manager of product development, said no one had bought into the fund as a result of the fee waiver but it has generated interest since it was rolled out last month.
The investment adviser fee and administration fees will be waived past the end of the year, Mr. Kelso said. Other charges will kick in again Jan. 1.
Separately, the bank's First Funds Total Return Equity Portfolio Class I fund got a five-star rating from Morningstar Inc., a mutual fund rating agency in Chicago. The top 10% of funds in any category are awarded five stars by Morningstar.
Mr. Kelso said advertisements touting the rating will run in The Wall Street Journal this week.
First Tennessee's other Morningstar-rated portfolio, its Fixed Income Intermediate Bond Fund, has three stars.