Standard & Poor's recent research calling into question the levying of 12b-1 fees by funds closed to new investors has many in the mutual fund industry scratching their heads and poking holes in S&P's assessment.

The 12b-1 fees, which cannot exceed 1% of a fund's total assets, are paid out of those assets to cover distribution and shareholder servicing expenses.

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.