12b-1 Fee

12b-1 Fee
One of many charges that mutual funds levy on money invested. It was created in 1980 under authorization of the SEC. It's purpose is to allow marketing expenses to be paid out of the fund's assets.

12b-1 fees investment & finance definition
Fees paid by mutual fund investors that are deducted from the fund's assets. These fees pay for marketing and distribution expenses, such as brokers' commissions.

Definition
12b-1 fee
An annual charge assessed to shareholders in order to pay for distribution, marketing, advertising, and promotional costs of a mutual fund. The 12b- 1 fee is included in a mutual fund's annual expense ratio.
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Rule 12b-1 Fee This is a fee that has been charged by a mutual fund to cover various miscellaneous expenses that occur over time.

12b-1 fee
A number of load and no-load mutual funds levy 12b-1 fees on the value of your mutual fund account to offset the fund's promotional and marketing expenses.

12B-1 Fees - The percent of a mutual fund's assets used to defray marketing and distribution expenses. The amount of the fee is stated in the fund's prospectus. The SEC has proposed that 12B-1 fees in excess of 0.25% be classed as a load.

12b-1 Fees - fees paid by the fund out of fund assets to cover the costs of marketing and selling fund shares and sometimes to cover the costs of providing shareholder services.

12B-1 Fee
An annual marketing or distribution fee on a mutual fund. The 12b-1 fee is considered an operational expense and, as such, is included in a fund's expense ratio. It is generally between 0.

12b-1 Fee
The maximum annual charge deducted from fund assets to pay for distribution and marketing costs.

12b-1 fee
The 12b-1 fees are deducted from the earnings of a mutual fund to cover expenses associated with the sales and marketing of the fund.
Annual Report ...

12b-1 Fee
A mutual fund expense levied to help reimburse a fund's sponsor for distribution costs and commissions.

12b-1 Fees: These fees, also known as distribution fees, pay a fund's marketing bills. Not all funds charge them, so this is a spot where investors can cut costs.

12b-1 fees: Advertising and promotional costs incurred by a mutual fund and charged against the assets in the fund under a Rule 12b-1 plan filed with the SEC.

12b-1 Fee
A marketing fee attached to mutual funds. Charged every year.
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12b-1 fee A fee that is paid out of a fund's assets to cover marketing and distribution costs of the fund or pay commissions to brokers. The 12b-1 fee can be charged in a no-load mutual fund.

12b-1 Fee
12b-1 Fees are fees paid by the fund out of fund assets to cover distribution expenses and sometimes shareholder service expenses.

12b-1 Fee: Annual marketing fee charged by some mutual funds. Named after SEC regulation allowing such fees.
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12b-1 FEE
12b-1 fees, also known as distribution fees, are one component of a mutual fund's annual fund operating expenses and can be thought of as an alternate way of paying sales-related expenses, such as compensating investment professionals.

Rule 12b-1 fee An extra fee charged by some mutual funds to cover promotion, distributions,... Rule 13d An SEC rule requiring disclosure by anyone acquiring a beneficial ownership...

12b-1 Fee A mutual fund expense such as advertising, public relations and distribution costs that are paid by shareholders.

Most of the funds today have 12b-1 fees place, and some go as high as 1% of a fund's assets per year. Between fees, commissions and management charges, the mutual fund industry is always getting paid, even if you, the investor, are losing money.

The percentage of mutual fund assets deducted each year for expenses, which include management fees, operating costs, administrative fees, 12b-1 fees and all other costs incurred by the fund.

funds is the "12b-1 fee", which represents expenses used for advertising and promotion of the fund. 12b-1 fees are generally limited to a maximum of 1.

Included in this figure are the fund’s management fee, shareholders servicing costs, and any annual 12b-1 fee.

12(b)-1 Fee Fee assessed to shareholders by the mutual fund for some of its promotional expenses. A 12b-1 fee must be specifically registered as such with the Securities and Exchange Commission and the fact that such charges are levied must be ...

The expense ratio includes investment management administrative costs and 12b-1 fees. The expense ratio does not include the cost of acquiring a fund, such as commissions and loads.
Expiration Date ...

This includes the yearly bill which charges you for hiring of fund managers, administration cost, and the 12b-1 fee. It also includes the fees for the transactions that were made in your account. Normally these fees will set you back 1.3-1.

NO LOAD MUTUAL FUND An open-end investment company, shares of which are sold without a sales charge. There can be other distribution charges, however, such as Article 12b-1 fees.

Mutual funds are allowed to market their companies and services via televisions, print, and radio. Some firms pass these costs on to their clients which is known as the 12b-1 fee.
Summary ...

No Load Fund: A mutual fund offered by an open-end investment company that imposes no sales charge (load) on its shareholders. The mutual fund still has underlying investment management expenses and may have marketing fees known as 12b-1 fees.

and because ETFs are insulated from the costs of having to buy and sell securities to accommodate shareholder purchases and redemptions. ETFs typically have lower marketing, distribution and accounting expenses, and most ETFs do not have 12b-1 fees.

The percentage of a fund's total expenses including its 12b-1 fees divided by its average net assets is known as the expense ratio.

This ratio includes such items as the management fee, trustee's fee, license fee, and 12b-1 fee, among others. It does not include the commissions you must pay to buy and sell ETF shares, or the costs incurred by the fund in trading its securities.

See also: Mutual Fund, Investment, Market, Share, Stock