As of December 8, 605 funds were listed as being closed to new investments, of which 153 funds with a total of 274 share classes were listed as charging an average 12b-1 fee of 0.64% to investors. Further, 94 of these funds were imposing the US Securities and Exchange Commission’s (SEC) enforced maximum rate of 1% of the fund’s net assets annually, according to S&P’s database of domestic mutual funds.
Equity funds represent the highest percentage of closed funds still charging a 12b-1 fee – fees paid by a mutual fund out of the fund’s assets to cover distribution expenses and shareholder service expenses – with 196 charging an average of 0.65%. Fixed income funds were a distant second with 24 imposing an average 12b-1 of 0.54%. On the other end, 306 mutual funds do not charge a 12b-1 fee as their prospectuses state that the fund does not allow it. Additionally, 15 closed funds have opted not to charge their investors a 12b-1 fee even though their prospectuses state that they can.
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