American Funds has started selling load-free shares to fee-based advisors through Schwab, Fidelity, TD Waterhouse, and DataLynx. The firm's newly minted F shares have been available since the beginning of the month on those platforms and will undoubtedly begin appearing shortly on others.

While American Funds have been very popular with transaction-based advisors, depiste interest, they have not been available to their fee-based counterparts.

"The financial advisors we serve prefer commission-free investment alternatives for their clients and have frequently inquired about investing in American Funds at net asset value," said J. Thomas Bradley, president of TD Waterhouse Institutional Services. "We're pleased to be able to offer our advisor clients F Class shares of the American Funds."

Is American Funds concerned that the no-load structure will alienate transactional advisors?

"We believe investors need financial advice," said American Funds spokesperson Chuck Freadhoff. "How they pay for it is irrelevant."

F shares serve multiple purposes: according to the firm's Web site, C shares automatically convert to F shares after ten years. 

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