– Investors in Longleaf Partners International (LLINX) will soon enjoy a lower expense ratio. Beginning October 1, Southeastern Asset Management will slash the fund’s management fee from 150 bps to 120 bps for the first $2.5 billion in assets, lowering the expense ratio from 169 bps to 139 bps. The firm has cut back its fees due to the additional international accounts it’s taken on over the past decade. Nevertheless, the fund is still one of the more expensive funds in its class.

– Fidelity Investments unveiled plans to increase foreign exposure in its funds to enhance the firm’s “planning and guidance tools as well as other asset allocation portfolios.” Some of these funds include the Fidelity, Advisor and VIP versions of the Asset Manager (FAMRX) series and the Fidelity Four-In-One Index Fund (FFNOX). The Fidelity and Advisor products, and Fidelity and Advisor Global Balance fund will also feature more exposure to commodities.

– Northern Trust (NSDQ: NTRS) recently introduced a new fund, Northern Multi-Manager High Yield Opportunity (NMHYX). The fund invests in a wide range of areas, including domestic and foreign high-yield bonds, emerging markets, bank loans, convertibles, preferreds, mortgages, equities and REITs. It seeks to profit from volatility in high-yield securities while minimizing risk.

The new fund is advised by Northern Trust Global Advisors (NTGA) and Northern Trust Investments, and co-managed by Andrew Smith, CIO of NTGA and Jessica Hart, portfolio manager at NTGA. The fund has a multi-manager platform and will select additional managers from a range of investment managers. NTGA has hired Stone Harbor and Loomis Sayles to sub-advise the fund. Harbor has a 60 percent target allocation, while Loomis Sayles has the remaining 40 percent.

– Vanguard will combine the $3.7 billion Vanguard Institutional Total Bond Market Index (VITBX) and $61.3 billion Vanguard Total Bond Market Index Fund (VBMFX). The new share class will require a minimum investment of $100 million. Pending shareholder approval, the merger would occur in February. The company will also merge the $5 billion Vanguard Institutional Developed Markets Index (VIDMX) into the $2.8 billion Vanguard Developed Markets Index Fund (VDMIX), producing a new institutional share class with a $5 million minimum initial investment requirement. The merger is scheduled for January 2010.

– A common dilemma for mutual fund investors is quietly fading away. The long march towards eliminating multiple share classes of mutual funds continues, with America Funds giving its B shares, which charged a penalty if sold within seven years, the axe. Evergreen Investments followed suit, eliminating similar share classes on some of its funds. Charles Schwab, which didn’t offer loaded funds, has eliminated all of its share classes in a bid to offer all investors lower fees. In all, more than 400 mutual funds dropped at least one share class in the first half of the year which, over time, will drive down costs for all investors as back office operations are scaled down. The move also simplifies the decision-making process for investors even as demand for no-load funds becomes the rule rather than the exception.