What is Sub TA fee?

Sub-TA fees pay for tracking and servicing you and your assets in the plan. These fees are generally included in a mutual fund’s expense ratio. Loads, sales-charges, and finder’s fees: paid to whoever distributes a fund, generally when new money goes into the fund.

What is the difference between a transfer agent and a custodian?

Transfer agents handle the direct responsibility for shareholder purchases and sales of mutual fund shares. Custodians report these transactions to fund managers so they can continue to keep fund assets and fund cash positions healthy.

What is a registered transfer agent?

A registered transfer agent is a transfer agent that has registered with the SEC or, in the case of banks serving as transfer agents, with an applicable Federal bank regulatory agency. Whether a transfer agent must register depends on whether the transfer agent transfers Section 12 Securities.

How do transfer agents make money?

Transfer agents pay distributions to investors, based on the registrar’s records. For example, transfer agents send interest payments to bondholders, as well as the face value of their bonds, once they reach maturity.

What are 12B 1 fees?

12b-1 fees are a recurring charge paid out of the net assets of a fund.

What is Sub TA?

This is called a sub-TA or sub-transfer agency fee. This fee is a part of the normal operational fees collected by the mutual fund. If your firm is tracking individual participant information, rather than the transfer agent doing this, the mutual fund company is willing to share a portion of this fee with you.

What is a 12B fee?

A 12b-1 fee is an annual marketing or distribution fee on a mutual fund. The 12b-1 fee is considered to be an operational expense and, as such, is included in a fund’s expense ratio. It is generally between 0.25% and 0.75% (the maximum allowed) of a fund’s net assets.