July 19, 2007

I am a licensed insurance professional and mutual funds salesperson.

I am writing to recommend the continuation of 12B-1 fees. The modest fees that are paid enable advisors to receive some compensation for all of the work that is required post sale. My experience is that the vast majority of clients either buy and hold their mutual funds for an extended period of time or make exchanges within the same family of funds.

Representatives like me are paid initially to advise clients on their purchases taking into consideration their circumstances and objectives. Research is then performed to select appropriate funds. During the holding period, clients are advised as to performance and receive advice on holding or exchanging. Work is performed to change beneficiaries and addresses, to explain tax issues and work with other advisors, and to do the numerous activities required to make certain their investment is meeting their personal needs and estate plans.

Most other professions charge a fee for these kinds of services. I think the 12B-1 fees actually reduce the costs to clients by keeping the remuneration incidental.

Thank you for your consideration.