Issues in Mutual Fund Distribution
Journal of Wealth Management, Vol. 18, No. 4, pp. 36-58, Spring 2016
Posted: 20 May 2019 Last revised: 28 Sep 2019
Date Written: February 7, 2016
This article 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. The discussion of Rule 12b-1 fees and distribution covers 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.
JEL Classification: G2, G23, G28
Suggested Citation: Suggested Citation