of Rockville, Maryland began offering broker-dealer clients class-A mutual fund shares for 15 of its 45 funds.
Rydex officials said the move was in response to client requests. Walter Kenyon
, national accounts director of Rydex Investments, hopes that the A shares will give broker-dealers "more flexibility in how they can provide advice and services to their clients."
Previously, Rydex offered all of their funds on a fee-for-service basis, either with C-share pricing or in a wrap platform, according to a company spokesperson. The spokesperson added that they had received "a steady stream of requests from broker-dealers and advisors" interested in other pricing schemes.
Rydex wanted to offer an up-front compensation option, and since B-shares, with their high 12b-1 fees are "not regulatory friendly" in the current environment, they decided to issue A-shares.
A-shares will be available for their more traditional buy-and-hold offerings, which include 13 benchmark funds a core equity fund and a sector rotation fund.
Stay ahead of the news ... Sign up for our email alerts now