The Death of the A Share (and nobody cares)

As the retail brokerage model continues its steady decline into irrelevance, one of its cornerstone products, the mutual fund A share, now finds itself in the opening throes of a death rattle years in the making…

via Investment News:

The “A” share-class grouping — the largest among retail mutual funds — is largely made up of funds that assess an upfront sales charge that mostly gets paid back to the broker and their firm, as well as an ongoing fee used in part for the same purpose.

Outflows totaled $122 billion over the first 10 months of the year, Morningstar Inc. estimates. If that figure holds, it could be the worst year ever for that share class, topping the nearly $88 billion in redemptions during 2011. Morningstar started tracking the data in 1993.

Those flows compare with lower-cost institutional-class funds, which increasingly are available to retail advisers and brought in $230 billion in deposits, and no-load funds, which do not assess a sales charge and took in about $12 billion this year.

Good riddance to a relic of our less egalitarian past.

Source:

Brokers’ push to fee-based comp slams higher-cost funds (Investment News)

Read Also:

Why We Educate Our Clients (TRB)

The End of Mutual Funds is Coming (Fortune)

 

What's been said:

Discussions found on the web
  1. sex commented on Sep 18

    … [Trackback]

    […] Info to that Topic: thereformedbroker.com/2014/11/24/the-death-of-the-a-share-and-nobody-cares/ […]

  2. bitcoin loophole reviews commented on Sep 27

    … [Trackback]

    […] Find More on on that Topic: thereformedbroker.com/2014/11/24/the-death-of-the-a-share-and-nobody-cares/ […]

  3. blazing trader commented on Sep 30

    … [Trackback]

    […] Information to that Topic: thereformedbroker.com/2014/11/24/the-death-of-the-a-share-and-nobody-cares/ […]

  4. 토토사이트 commented on Oct 19

    … [Trackback]

    […] There you will find 45040 additional Info to that Topic: thereformedbroker.com/2014/11/24/the-death-of-the-a-share-and-nobody-cares/ […]

  5. cvv shop commented on Oct 31

    … [Trackback]

    […] Read More to that Topic: thereformedbroker.com/2014/11/24/the-death-of-the-a-share-and-nobody-cares/ […]

  6. bmo canada commented on Nov 29

    … [Trackback]

    […] Read More Information here on that Topic: thereformedbroker.com/2014/11/24/the-death-of-the-a-share-and-nobody-cares/ […]

  7. replica watch commented on Dec 29

    … [Trackback]

    […] Find More Info here to that Topic: thereformedbroker.com/2014/11/24/the-death-of-the-a-share-and-nobody-cares/ […]

  8. Library commented on Jan 06

    … [Trackback]

    […] Here you can find 37563 more Info on that Topic: thereformedbroker.com/2014/11/24/the-death-of-the-a-share-and-nobody-cares/ […]

  9. Delta 21987LF manuals commented on Jan 20

    … [Trackback]

    […] Read More to that Topic: thereformedbroker.com/2014/11/24/the-death-of-the-a-share-and-nobody-cares/ […]