The 'Many Faces' of Mutual Fund Revenue Sharing
Journal of Index Investing, Vol. 5, No. 3, pp. 59-72, Winter 2014
14 Pages Posted: 7 Dec 2014 Last revised: 27 May 2015
Date Written: December 3, 2014
The objective of this article is to take some of the mystery out of mutual fund revenue sharing, but without being able to say investors have transparent disclosure. It appears that most in the world of regulation and practice of revenue sharing lacks clarity, consistency, proper redress, and investor transparency, such as the so-called direct distribution of revenue-sharing payments from mutual fund adviser profits.
Keywords: mutual funds, revenue sharing payments, regulation, opacity, direct distribution, directed brokerage, 12b-1 fees, defensive 12b-1 fees, 401(k) plans, Schwab, Edw, Jones, SEc, Morgan Stanley
JEL Classification: G2, G23, G28
Suggested Citation: Suggested Citation