12b1 Fee

Financial Planning - Financial planning in general. (Moderated) 

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Subject Author Date 12b1 Fee HW \"Skip\" Weldon 06-25-2009  Re: 12b1 Fee Tad Borek 06-25-2009  Re: 12b1 Fee Andrew Koenig 06-30-2009
Posted by HW \"Skip\" Weldon on June 25, 2009, 12:32 pm Please help settle a debate. When looking at American Fund's Washington Mutual (AWSHX), they show a "total expense ratio" of .58% and a 12b1 fee of .24%. Is the 12b1 IN ADDITION TO the .58%, or part of the .58%? Thanks. -HW "Skip" Weldon Columbia, SC Posted by Tad Borek on June 25, 2009, 1:22 pm HW "Skip" Weldon wrote: > When looking at American Fund's Washington Mutual (AWSHX), they show a > "total expense ratio" of .58% and a 12b1 fee of .24%. > > Is the 12b1 IN ADDITION TO the .58%, or part of the .58%? Skip, in any disclosure coming from an investment company, "total expense ratio" would include a 12b1, if there was one. The SEC requires that a fund to disclose the 12b1 as part of its disclosures about expenses. If AF is saying 0.24% and 0.58%, then the 0.24% is already included in the 0.58%. If someone else is reporting it - well who knows what some blogger might be saying? I'd check the prospectus and recent quarterly or annual report to confirm. -Tad Posted by Andrew Koenig on June 30, 2009, 9:32 am > When looking at American Fund's Washington Mutual (AWSHX), they show a > "total expense ratio" of .58% and a 12b1 fee of .24%. > > Is the 12b1 IN ADDITION TO the .58%, or part of the .58%? Don't forget the 5.75% purchase fee.