American Century Investments has expanded its offerings to financial intermediaries by rolling out C shares.
C shares are expected to be launched June 1, and will be available for 23 of American Century's funds via brokers at American Express, Legg Mason and Linsco/Private Ledger through a 31-day subscription period, the firm says.
The addition of C shares solidifies the traditional no-load fund group’s move toward working through financial intermediaries. The fund company already does business with independent RIAs.
“We’re here to help those advisers who want to move toward a fee-based business, or for anyone who wants to annuitize their book,” says David Larrabee, senior vice president of the firm’s Investment Advisor Sales Division. “This moves us into the broker and adviser channel. We are very dedicated to this market.”
Brokers will get 1% upfront for equity funds and .75% for fixed income funds. A 12b-1 trail fee of .75% for bond funds and 1% on equity funds will be paid to brokers beginning 13 months after the sale. The shares also carry a 25 basis point service fee.
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