5% maximum front-end loads
we expect to see with T shares.
It is not adjusted for sales charges such as front-end loads
, deferred loads, and redemption fees.
Summary statistics for front-end loads
appear in Panel B of Table 2.
Though the front-end load
is smaller than that of Fund B, the recurring nature of the 12b-1 fee is amplified through a compounding effect.
Adopting the "T" share class would, he said, "cause some negative revenue impact to [brokerage firms] and to advisors, though the figure is less than what the headline differences in front-end loads
In the United Kingdom, where corporate and non-corporate mutual funds exist side-by-side, mutual funds organized as corporations charge significantly lower front-end loads
and annual management fees than mutual funds not organized as corporations, after controlling for other factors.
Also note that, when compared to these alternatives, the option that combines a lower front-end load
and a moderate 12b-1 fee is not a suitable option over any of the investment horizons.
In all cases, those that did not impose a front-end load
imposed a surrender charge.
In 1993, in an effort to limit marketing deception relating to fund costs, the NASD issued a rule (125) barring sales representatives or their firms from representing a mutual fund as ""no load' or as having "no sales charge' if the" fund imposes a front-end load
, a redemption fee or a CDSC, or a 12b-1 fee exceeding 0.
On a sales-weighted basis, "investors buying front-end load
shares in those years outperformed the average for share classes in the same Morningstar category by 27 basis points," Schott Stevens wrote, while "similarly, publicly available data show that investors concentrate their purchases in front-end load
share classes with lower expense ratios and pay brokers lower-than-average loads -- further contradicting the Department's claims of harm to retirement savers.
Investors pay no front-end load
for subscription on the Frankfurt Stock Exchange nor are any exchange fees charged.