In an effort to keep up with its competition, the GE Funds managed by GE Investment Management of Stamford, Conn. is realigning the share classes on its 16 funds and is lowering the 12b-1 fees on its A shares. The changes reflect GE's desire to make the current share class lineup less confusing to current investors and more competitive in the marketplace, said a GE spokesperson.
Beginning September 17th, the current 12b-1 fee of 0.50 percent applicable to investors of A shares will be cut in half to 0.25 percent. C shares, which previously had no initial sales charge but carried a 0.25 percent 12b-1 fee will be renamed A shares. The converted A shares mean shareholders will now have to pay a front-end sales charge of up to 5.75 percent on GE's equity funds, and up to 4.25 percent on purchases of fixed-income funds. These sales charges will be waived for GE employees, retirees and their families.