August 30, 2010
I wish to comment on the changes in the 12B-1 fees. I am pleased that you are allowing the continued use of the 0.25% fees under a new name. When I began in this business 26 years ago there were no 12B-1 fees and I found many people who had been sold a mutual fund which was never serviced. With the 25 bsp fee, a broker will continue to service his/her client. I also feel it makes sense to allow the 75 bsp on C-shares to not exceed the cost of purchasing an A-share. This will end broker abuse of the C-share.
What I am concerned about is allowing brokerage firms to charge their own fees on A-shares. I feel this is NOT good. A-share fees should be established by the fund family and no broker should be allowed to adjust them. This prevents further broker abuse.
I make these comments knowing none of them will effect me as I am retiring from the business on December 31, 2010.
Mr. Richard Anderson