From: Paul Matson [pmatson@alltel.net]
Sent: Wednesday, May 05, 2004 11:55 AM
To: rule-comments@sec.gov
Subject: S7-09-04

Dear Sirs;

 

I believe that it is important to retain the 12b-1 service fees on mutual 
funds.

I am a smaller office with one assistant.   I rely on the 12b-1 fees received 
to cover some of the overhead of the office and wages.  Most of my assistant’s 
time is spend on service of accounts.  Without 12b-1 it would be necessary to 
charge clients for the basic services.  Many of my clients have small amounts 
of money invested as they are not wealthy.  I consider the 12b-1 fees I 
receive as my compensation for servicing these account.

Currently, during annual review with my clients, if reallocation is needed I 
first look at the existing fund companies to see if there is a suitable fund 
available.  If the 12b-1 fees are eliminated, there would be incentive to find 
a different fund that could be justified to the client that would generate 
income for our office.

 

Paul Matson
SunAmerica Securities
Lexington, Nebraska



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