From: Oscar F. Martinez |
Ms. Nancy M. Morris, Secretary Dear Ms. Morris: I am a licensed Insurance representative and also sell mutual funds. You are studying the possibility of cancelling the 12b-1 fees on mutual funds. This is a very slight charge to investors and in return they receive our services concerning how to handle their investments, when to change into the same family of funds to a different type of mutual fund. Our compensation is very smal: 25 basis points; To give you an example: If my client has invested $100,000 the charge will be $250 annually. This will give him or her access to my knowledge of market conditions and the study that has to be performed on the different funds he or she is holding, so when I recommend that he or she quits one specific fund and invest in a different one(s) I believe that is in my client best interests. Please let the SEC recommend that the 12b-1 fees will be kept. Sincerely, Oscar F. Martinez FICF, LUTCF |