A year and a half ago, FINRA announced it would start requiring nontraded REIT sponsors and brokers to show just how big a bite commissions — of 12% to 15%, or even more — take out of client investments in this asset class.

In an almost immediate response, the industry created a new T share class, which replaces high, upfront commissions with trailing commissions. The result is that T shares can extract commissions as nontraded REITs over time in a steady drip.

Subscribe Now

Access to premium content including in-depth coverage of mutual funds, hedge funds, 401(K)s, 529 plans, and more.

3-Week Free Trial

Insight and analysis into the management, marketing, operations and technology of the asset management industry.