Ameriprise recommended and sold these customers more expensive mutual fund share classes
when less expensive share classes
In addition to the R6 share class, all 25 Sterling Capital mutual funds are available in A, C and Institutional share classes
Fidelity Investments launched a new short-term bond index fund and two lower-priced institutional share classes
for three of its existing bond index funds.
Regardless of the outcome of the Department of Labor's fiduciary rule, investment management companies' adoption of new share classes
to comply with the rule may reduce conflicted advice, resulting in more money in investors' pockets.
Amid a persisting trend toward lower-cost and more transparent share classes
, as well as the recent Department of Labor (DOL) conflict of interest rule, the R6 share, which typically has no revenue sharing (e.
A 401 (k) lawsuit targeting investment advice and self-directed brokerage accounts was recently brought against Fidelity Management Trust Company (Fidelity) based on the premise that Fidelity is a plan fiduciary because it selects which share classes
are made available in the self-directed accounts, thus exercising discretion over plan asset investment (Fleming v.
Emirates MENA Fixed Income Fund moves to daily trading, making it the largest daily traded fund of its kind; new GBP-denominated share classes
added to several funds managed by Emirates NBD Asset Management.
The company said that it has launched Sterling, Euro and Swiss Franc share classes
in its Stenham Trading Fund.
Those share classes
include multiples of classes that appear in different funds.
These "clean" share classes
, Szapiro said, "have a different structure" than typical mutual fund share classes
, and the innovation "won't stop there.
Selecting inappropriate and imprudent mutual fund and separate pooled account share classes
when lower expense share classes
were available for the same investments,