12b-1 fee

12B-1 Fee

A fee one must pay in a 12B-1 Plan. A 12B-1 plan is a mutual fund that, instead of a load (or sales fee), annually charges shareholders a small percentage of the fund's market value, which is called a 12B-1 fee. Instead of assessing a fee when buying or selling shares as most mutual funds do, 12B-1 fees are deductions from the fund's market value per shareholder. Usually a 12B-1 fee is less than 1% of the market value.

12b-1 fee

A type of mutual fund expense in which the fund's operators use a portion of the firm's assets to pay for costs of distributing the fund. The fee is included in the fee table of a fund's prospectus. National Association of Securities Dealers' rules establish an annual limit on the size of the fee. The name is derived from the SEC rule that describes the fee. Also called distribution fee.

12b-1 fee.

A number of load and no-load mutual funds levy 12b-1 fees on the value of your mutual fund account to offset the fund's promotional and marketing expenses.

These asset-based fees, which get their name from the Securities and Exchange Commission (SEC) ruling that describes them, typically amount to somewhere between 0.5% and 1% annually of the net assets in the fund.

A fund that charges 12b-1 fees must detail those expenses, along with other fees it imposes, in its prospectus.

References in periodicals archive ?
More than half of that sum, $172 million, was attributable purely to revenue sharing payments, that is receipts over and above sales load or 12b-1 fee revenue, from the firm's eight "preferred fund families" and Federated Investors.
00% of which is paid to the broker dealer in the form of a 12b-1 fee.
Given the continuous opportunities within the closed-end fund marketplace since May of last year, RiverNorth has made the decision to launch an institutional share class of the Fund, RNCIX, to give institutional investors the opportunity to invest in a share class that does not contain a 12b-1 fee.
For the period August 1, 2013 through July 31, 2014 EULAV Securities LLC (the "Distributor") contractually agreed to waive a portion of the Fund's Rule 12b-1 fee in an amount equal to 0.
For the period August 1, 2012 through July 31, 2013 EULAV Securities LLC (the "Distributor") contractually agreed to waive a portion of the Fund's Rule 12b-1 fee in an amount equal to 0.
The SEC is currently looking at changes to 12b-1 fee disclosures.
The article concludes that 12b-1 fee payments are out of control and that major changes are needed to eliminate shareholder abuses.
An example of recent innovation in this arena is the 12b-1 fee rebate program currently offered by E*Trade.
The 12b-1 fee was intended as a temporary measure to allow funds to recoup marketing and advertising costs associated with launching the new share class.
05) between the year and the presence of a 12b-1 fee in the ad.
Then there's the 12b-1 fee for advertising, marketing and distribution expenses.
A load mutual fund normally can impose three major fees: a commission (load), a 12b-1 fee and a management fee.