Phoenix Investment Partners, the $56 billion Hartford, Conn.-based asset management subsidiary of The Phoenix Companies, has launched two new asset allocation mutual funds that are noticeably lacking back-end loaded B shares. Phoenix is only offering A and C shares for purchase on the funds, which debuted Aug. 1.
"The majority of our sales are in the more fee-based classes," said Phoenix spokeswoman Sharon Bray. She notes that B shares sales at the fund firm have dropped dramatically over the past few years. "It doesnt make sense to add a share class that isnt in demand," she added.
Phoenix sees the majority of its sales come through level-load C shares that appeal to fee-based advisors and through the load-waived A shares that it offers through wrap programs at various wirehouses, Bray added.
B shares have come under increasing scrutiny over the last few months as regulators and investors have charged various brokerage firms representatives with selling the expense-laden share class in order to pump up brokerage commissions.