Based on distribution agreements with 950 fund companies from 51 legal residences, MFEX is able to calculate and collect discounts on behalf of distributors. Asset managers are encouraging distributors to attract new investors to the fund. This activity is based on the realization that getting more investors into a fund will improve asset growth, which offers all investors greater return potential. The most common terms used to define these distribution structures are: trailer fees, discounts, commissions, retrocessions, incentive fees, incentives and 12b-1 fees (in the United States). 950 distribution agreements with fund companies covering 80,000 funds, Without a streamlined procedure for tracking distribution costs and commissions, a company may have difficulty maintaining transparency, resulting in fewer investors, higher labour costs and a greater risk of error. Current challenges for an asset manager include determining the true value of the asset at the maturity of the distribution, applying the correct commission rate, setting the correct commissions of clients who have joined the Fund or left the fund during the period, verifying the sending of correct payments to the relevant distributors and ensuring a precise and transparent reporting structure. A single error during this process can have a significant impact on the credibility of the company and deter future and current distributors from continuing to promote the asset. Enjoy the benefits of our fund distribution services If an investment fund charges a trailer fee, it is detailed in the investment fund`s prospectus. It will appear as part of the total administrative costs of the Mutual Fund.
Mutual funds must provide full publicity of all royalties collected by the Fund. The management fees of an investment fund are usually displayed with the characteristics of a marketing fund. Distribution fees and commission management are the process of calculating, allocating and adequacy distribution commissions and distribution costs made available to distributors of a particular fund or sector. Asset managers offer traders (for example. B, financial advisors or retail banks) a single or current commission to encourage them to offer the asset manager`s products and encourage distributors` clients to invest in the fund.