Issues in Mutual Fund Distribution
91 Pages Posted: 29 May 2012 Last revised: 28 Aug 2016
There are 2 versions of this paper
Issues in Mutual Fund Distribution
Issues in Mutual Fund Distribution
Date Written: December 22, 2015
Abstract
This paper provides in-depth discussion of important issues related to mutual fund distribution. The first two topics are fund distribution channel characteristics and Rule 12b-1 fees and distribution. Distribution channel characteristics discuss direct channel, advice channel, retirement channel, institutional channel, supermarket channel, and multiple-share classes. Rule 12b-1 fees and distribution discuss adoption of Rule 12b-1, Rule 12b-1 after adoption, current 12b-1 fees, issues with 12b-1 fees, and summary of 12b-1 fees attributes. The remaining topics include direct sold and broker-sold services, Rule 12b-1 fees and revenue sharing, revenue sharing issues, “soft-dollar” trading, distribution and flows, opacity and agency conflicts, expense shifting agency conflicts, and intermediated distribution and portfolio managers.
Keywords: mutual fund distribution, multiple share classes, channels of distribution, fund flow, fund services, transparency, agency conflicts, expense shifting
JEL Classification: G2, G23, G28
Suggested Citation: Suggested Citation