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A, B, C shares...and

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May 26, 2008 3:01 am

what’s the other?  I heard it’s a cross between A and C shares.  You get roughly 2% up front and 1/2 pt trail.

May 26, 2008 3:30 am

Call the company.

Take your pick of “R” shares, “O” shares, “Z” shares, etc.

Please share which company has a “cross” between the A & C shares.  You might be thinking of some kind of wrap program.  Wrap programs have their own structure and typically have “no-load” A-shares.

May 26, 2008 3:30 am
NOVA:

what’s the other?  I heard it’s a cross between A and C shares.  You get roughly 2% up front and 1/2 pt trail.

  It's called K shares.  They do pretty much exactly what you said.  They are the best thing to build your book of business on.
May 26, 2008 4:09 am
snaggletooth:

[quote=NOVA]what’s the other?  I heard it’s a cross between A and C shares.  You get roughly 2% up front and 1/2 pt trail.

  It's called K shares.  They do pretty much exactly what you said.  They are the best thing to build your book of business on.[/quote]   Which fund families offer K shares?
May 26, 2008 4:14 am
Primo:

[quote=snaggletooth][quote=NOVA]what’s the other?  I heard it’s a cross between A and C shares.  You get roughly 2% up front and 1/2 pt trail.

  It's called K shares.  They do pretty much exactly what you said.  They are the best thing to build your book of business on.[/quote]   Which fund families offer K shares?[/quote]   All the best ones...American Funds, Franklin Templeton, and the other 6 fund families out there we talked about earlier.
May 26, 2008 4:20 am

2% load or cdsc involved?

May 26, 2008 4:24 am
Primo:

2% load or cdsc involved?

  Yes, there is a 2% load and 2 year cdsc.  This is why they are the best for building a book business...since they pay a trail as well.   The smartest thing to do is use them in wrap accounts.  That way you get the 2% upfront plus the wrap fee...and your trails are higher.
May 26, 2008 12:29 pm

K shares, that’s what i was looking for.  THANKS!

May 26, 2008 12:55 pm
snaggletooth:

[quote=Primo]2% load or cdsc involved?

  Yes, there is a 2% load and 2 year cdsc.  This is why they are the best for building a book business...since they pay a trail as well.   The smartest thing to do is use them in wrap accounts.  That way you get the 2% upfront plus the wrap fee...and your trails are higher.[/quote]
Snags, you charge a front end load AND a wrap fee AND collect trails all on the same assets?  Am I missing something or are you being sarcastic?
May 26, 2008 4:33 pm
Morphius:

[quote=snaggletooth][quote=Primo]2% load or cdsc involved?

  Yes, there is a 2% load and 2 year cdsc.  This is why they are the best for building a book business...since they pay a trail as well.   The smartest thing to do is use them in wrap accounts.  That way you get the 2% upfront plus the wrap fee...and your trails are higher.[/quote]
Snags, you charge a front end load AND a wrap fee AND collect trails all on the same assets?  Am I missing something or are you being sarcastic?
[/quote]   Yeah I was just making a joke the whole time.  Of course there's no such thing as K shares (I don't think).  I was trying to mess with the original poster.
May 26, 2008 5:12 pm

Thanks for the clarification.  The irony is they have come out with so many different share classes that pretty much nothing would surprise me anymore - even K shares … or maybe OK shares!

May 26, 2008 6:06 pm

federated super c shares pay 2 upfront and 1% trail.

May 26, 2008 6:19 pm

[quote=ezmoney]federated super c shares pay 2 upfront and 1% trail.[/quote]
See?  My point exactly. 

Is there really such a thing as “super C shares” or is this another joke?!  Who knows?

Maybe that’s one of the reasons I went primarily fee based long ago.  Much simpler!

May 26, 2008 6:44 pm

One thing that everyone needs to keep in mind - there is a pretty good chance that a large part of the trails associated with these share classes goes away by the end of the year, with the SEC working on it and making it a priority as they are doing. One of the proposals set forth that many people think has a good chance of passing, is capping the trails you can collect over time on C shares, with a limit of the amount of up front load you would have collected hhad you done A shares. Sort of like the American Funds C shares, which convert to F shares (25 bps trail) after 10 years. Except it would be a lot less than 10 years.

The only way we will retain any pricing power in the future is by using fee based platforms. Anything else takes the pricing power out of our hands.
May 26, 2008 6:49 pm

Putnam (not that I use Putnam) has some M shares. They pay less upfront, but have a 65 bps trail. It’s in between an A share and a C share. (although Putnam is sometimes a joke, this is not a joke )

May 28, 2008 10:38 pm

T shares.  Franklin T.  That’s the only fund company I found.

May 29, 2008 4:38 am
iceco1d:

[quote=Morphius] [quote=snaggletooth][quote=Primo]2% load or cdsc involved?

  Yes, there is a 2% load and 2 year cdsc.  This is why they are the best for building a book business...since they pay a trail as well.   The smartest thing to do is use them in wrap accounts.  That way you get the 2% upfront plus the wrap fee...and your trails are higher.[/quote]
Snags, you charge a front end load AND a wrap fee AND collect trails all on the same assets?  Am I missing something or are you being sarcastic?
[/quote]   They are actually KY shares for that wrap program!  [/quote]   And, for another 1%, the client can request a reach-around.
May 29, 2008 4:38 am
iceco1d:

[quote=Morphius] [quote=snaggletooth][quote=Primo]2% load or cdsc involved?

  Yes, there is a 2% load and 2 year cdsc.  This is why they are the best for building a book business...since they pay a trail as well.   The smartest thing to do is use them in wrap accounts.  That way you get the 2% upfront plus the wrap fee...and your trails are higher.[/quote]
Snags, you charge a front end load AND a wrap fee AND collect trails all on the same assets?  Am I missing something or are you being sarcastic?
[/quote]   They are actually KY shares for that wrap program!  [/quote]   Ice, I guess you do need something to ease this process...