|
 |
|
|
|
|
|
|
Thursday May 20, 05:55
|
|
Citigroup Continues To Dump Enhanced Loads
|
|
Citigroup Asset Management is eliminating the 1% upfront load on the remaining portfolios in its Smith Barney fund family. Citigroup began the move to drop the load on its so-called super C-shares and convert them to traditional C-shares earlier this year (www.fundmarketing.com, 2/15). Citigroup, once a huge player in the enhanced C-share market, was joined in the effort by Prudential Financial, Wells Fargo and Pioneer Investments. A Citigroup spokeswoman could not find officials to comment.
Avi Nachmany, director of research at Strategic Insight, believes that enhanced C-shares ultimately will be eliminated across the industry as firms focus on pricing and possible regulatory scrutiny. Enhanced C-shares charge an upfront 1% fee to compensate brokers in addition to an ongoing 1% fee, a structure that is confusing to investors, particularly when offered next to traditional C-shares, and could invite the eyes of regulators. Franklin Templeton Investments, another big enhanced C-share player, put the kibosh on its enhanced C-shares last year. Citi is eliminating the 1% upfront load on its Smith Barney Limited Maturity Muni Fund, Smith Barney New York Intermediate Muni Fund, SB Growth & Income Fund, and Smith Barney Dividend & Income Fund, among others, according to filings with the Securities and Exchange Commission.
(Fund Marketing Alert)
|
|
All funds news
|
|
|
|
|
|
|
|
|
|
 KEYWORD SEARCH |
|
|
|
|
|
SUBSCRIPTION |
|
|
|
|
|