The seven-page guidance, issued by the Division of Investment Management in December, focuses on disclosure issues and certain procedural requirements with offering variations in mutual fund sales loads
and new fund share classes.
In addition to the changes to 12b-1 fees described above, the SEC's proposal would also amend Rule 6c-10 in such a way to permit fund families to allow broker-dealers to add sales loads
of their own choosing to fund NAVs, rather than abiding by the loads printed in the fund's prospectus.
By comparison, you do pay commissions when you invest in funds with sales loads
The JNL Advisor uses the same chassis, but imposes no sales load
In calling for comments, the Commission identified a number of issues, including: whether it can be demonstrated that additional sales of shares could benefit shareholders, and if so, the nature and extent of such benefit; whether the mutual fund industry's use of sales loads
placed mutual fund distributors at a disadvantage vis-a-vis distributors of other investment products; the anticipated competitive effects within the mutual fund industry were the Commission to allow assets to be used to subsidize distribution costs; and whether it would be more desirable for investors to pay distribution expenses by means of periodic charges against assets rather than by a one time sales load
levied at the time of sale.
CLASS A shares might have a front-end sales load
, a type of fee that investors pay when they purchase fund shares.
Morningstar's Cooley says one of the best tax-managed funds that carries no sales load
is Vanguard's Tax Managed Growth and Income Fund (ticker: VTGIX), which has averaged an annual total return of 28.
The Fund raised USD 165,000,000 in its common share offering (before deduction of the sales load
and offering expenses), excluding any exercise of the underwriters' option to purchase additional common shares.
The company's investment adviser, OFS Capital Management, LLC (the "Adviser"), has agreed to bear the sales load
payable to the underwriters.
Further, the refund for every unit held by the unitholder shall be an amount equal to net asset value per unit applicable on the date the cooling-off right is exercised along with any sales load
paid by the unitholder.
The report includes sales load
and management fee being charged by the management company to the investors and total expense ratio of the fund.