July 26, 2010
This proposal is an awful idea. The "C" shares allow a smaller investor to have access to a financial professional for just 1% per year. He or she also has the full flexibility to change fund families without a sales charge after 12 months under this share class. Elimination of this would make investors who choose to work with a professional to pay large upfront loads ("A" Shares) regardless of time horizon or need to switch to another fund family later. The investment professional would either be forced to use A shares or use a fee based account - either of which is more expensive than "C" shares for most investors. Fee based accounts will typically be at least 1% - and that's ON TOP of the internal mutual fund fees
This is all poorly thought out and very ill conceived.