Massachusetts Financial Services is joining the growing ranks of mutual fund companies creating more sales-charge options.
The Boston-based company plans to add level-load pricing on some of its mutual funds, said Jeremiah M. Potts, senior vice president in charge of sales development at Massachusetts Financial.
This pricing option, known in industry jargon as "C shares," allows mutual fund buyers to pay a set management fee annually. The company already offers front-end loads, or "A shares," in which a sales fee is levied at the time of purchase, and back-end loads, or "B shares" in which customers are charged sales fees when they sell shares.
"Ultimately there are markets for A, B, and C shares, and they don't overlap," Mr. Potts said.
While details are still being ironed out, Massachusetts Financial's C shares will have a unique twist. The 1% fee that brokers earn for selling C shares will be paid out monthly instead of quarterly, Mr. Potts said.
