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Brokerage Supermarket Platforms can be a major channel of distribution as they are a source for fund investments from financial advisers as well as individual customers.


Brokerage firms create platforms which consist of an approved list of mutual funds. These funds are either available on either a Transaction Fee (“TF”) or a No Transaction Fee (“NTF”) basis. Advisers often use the TF platform, which uses an Institutional share class with a lower expense ratio. The retail market is generally attracted to the NTF platform because the fund itself, as opposed to the investor, pays a commission fee to the brokerage firm. NTF platforms often use a “P” or platform class which includes a 25 basis point 12b-1 charge as well as a shareholder servicing fee.


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