Product rationalization has been at the forefront of the mutual fund industry over the last few years. As a result, share class “churn,” which ramped up starting in 2016, is on pace to continue as managers add and replace share classes that better fit the current consumer demand. Read more
Whitfield Athey is CEO of Delta Data Software. His role at Delta Data is focused on growth of the product base, satisfaction of clients and scalability of the organization.
The new DOL Fiduciary rule has barely gone into effect, and it is already starting to shake things up. One of the first changes we are starting to see is a new set of mutual fund share classes. American Funds and Franklin Templeton have already announced new share classes to help advisors deal with the new fiduciary rule. Rest assured, there will be more.
These new share classes are what some are calling “stripped down” share classes as they carry no sales load, no 12b-1 fees and no sub-TA fees. Bare bones. Absolutely no compensation from the fund to the distributor. It is up to the distributor to figure out how to charge their clients and in turn compensate the advisor.
L. Burton Keller was a principal founder of the company in 1985 and currently focuses on strategic initiatives for the company. Mr. Keller is a former member of the Bank, Trust and Retirement Advisory Committee of the Investment Company Institute. He has served on numerous committees and task force groups with the ICI over the last 17 years including Co-chair of the Dividend Distribution Task Force.