July 9, 2007
Dear Sir/Madam:
I have been a registered representative for the past 10 years and market mutual funds to my client base. Part of the service that I provide for my clients is helping them with their asset allocation. As my clients grow older and there needs change, I consistently review there mutual funds, rebalance their portfolios, and offer suggestions for overall improvement. As you are aware, the bulk of the fees that I earn on mutual fund business are paid up front. I earn a small fee in the form of 12b-1 fees for ongoing support and service to my clients. Quite frankly, if I did not earn these fees, our customer service would suffer as well as our client’s portfolios. There is always a cost to doing business in the form of driving to appointments, mailings, phone calls, and general service. The 12b-1 fees that I earn help offset some of these costs and provide an added incentive to provide outstanding service to our clientele with a focus on investment performance. Please do not eliminate 12b-1 fees as it will be the investing public, not advisors, who will suffer the most.
Sincerely,
Jeff Czerwinski, CFP®
Jeffrey A. Czerwinski, CFP(R)
Financial Adviser