The 12b-1 fees funds imposed in flush times to compensate brokers for the sale of B shares could begin to haunt fund firms, now that the markets have turned bearish.

At least one fund company has said that the decrease in its Internet and tech sector funds' values have so seriously eroded fund assets that the 12b-1 revenues it expects to receive on its funds' B shares are no longer adequate to reimburse the fund adviser for the up-front commissions it has already paid to brokers that previously sold the funds.

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