“Fund companies almost always waive the front-end load for retirement plan participants who invest in A shares, and investors who have reached a certain asset level with a fund company often qualify for breakpoints that reduce or eliminate the front-end load on A shares,” explained Don Phillips, managing director for Morningstar, in a press release.
The new load-waived A share rating will supplement the original A share rating, which reflects the maximum front load. Phillips said the comparison of the A share rating and the load-waived A share rating will help investors see the impact of front-end loads on performance.
The new rating will be available in December in the following Morningstar products:
- Morningstar.com, a Web site
- MorningstarDirect, a global institutional research platform
- Morningstar Licensed Data, data feeds for institutional clients
- Morningstar Principia and Morningstar Advisor Workstation products for financial advisors.