That did not include 12b-1 fees covering marketing and other costs.
Investors often do not notice 12b-1 fees because they are deducted before a fund's net asset value is calculated.
This has happened often to the Vanguard Group's low-cost funds, which don't charge 12b-1 fees, the company says.
No-load funds do exact management fees and may impose charges known as 12B-1 fees to cover costs of marketing and shareholder services.
Andrew Tyrie, the Conservative MP who chairs the Treasury select committee, described the token £1 fees as a "rather extraordinary arrangement".
Mr. Rottersman said 12b-1 fees "were already under a lot of scrutiny before Spitzer, and now they are going to be under an even bigger political attack".
The bill would eliminate the maddening and costly 12b-1 fees that are levied on fund shareholders but benefit only fund companies.
Then there is the issue of 12b-1 fees, the fees funds charge for marketing and distribution, sometimes even for funds that are closed to new investors.
If you broke down investment management fees and 12b-1 fees, I would argue that much of the growth is in the latter area, not the former.
Professor Morey found that the average deferred-load fund imposed significantly higher 12b-1 fees -- what a fund's distributor deducts for marketing costs.
The absence of economies of scale in the expense ratio is in large part attributable to the industry's embrace of 12b-1 fees.
