The Undiscovered Managers Funds of Dallas is suspending the offering of C shares on all of its mutual funds and closing two of its smallest funds, according to a statement of additional information the fund group filed with the SEC March 15.
The group of nine funds, with $321 million under management, originally offered C shares for financial intermediaries who were making the transition from being paid per transaction to fee-based compensation arrangements, said Mark Hurley, president and CEO of Undiscovered Managers. The C shares were added at different times as each new fund was introduced. But, fewer intermediaries are now making that compensation shift, he said. The C class of shares had only attracted $1.8 million in assets in all of the funds as of March 21, Hurley said.