March 19, 2004
I urge you not to abolish the 12-B1 fees. I have been in the business for 32 years. I have explained the cost of owning a mutual fund. Sales charges, expense ratios, turnover. Manny of my clients do not invest new money but require service. The only way I can take the time to answer their questions, review their funds, make suggestions on rebalancing etc. is because Im receiving a service fee.I also do the majority of my mutual fund business with American Funds which including the 12 B1 fee have some of the lowest expense ratios in the industry.Ialso feel that if 12 B1 fees are abolished the income lost by many would either run them out of business or lead to churning of accounts.The investing public would be without needed personal service, someone to help their plans and goals stay on track. Gene