"In looking over the most recent revenue sharing disclosure, I noticed the total amount for Hartford was significantly higher than the other funds. Could you please explain the disparity?"
"We provided a lot of input and assistance to Hartford when they entered the mutual fund business. In return we received a small percentage participation of the annual net income produced by its fund family. Before the end of 2005, we sold our profit participation back to Hartford for $70 million. At the time the arrangement was put in place, it seemed appropriate and acceptable. Reviewing it in the perspective of the regulatory events of the past few years, I believed the right thing to do was to end it. The sale of the profit participation resulted in the numbers you are referring to."
These are direct quotes from the Jim Weddle weekly Q&A forum. During my almost 10 years at Jones I never ever was told that the firm owned a piece of the Hartford Mutual Funds.
I think I need to retake my ethics class.