As reported on the Mfwire in July, Etrade has formally rolled out its 12b-1 Mutual Fund Fee Rebate Program, which rebates customers 50 percent of the amount E*TRADE Securities receives from mutual fund companies in 12b-1 and service fees for distributing and servicing their respective funds.
All of the brokerage’s current customers will be automatically enrolled into the program as well as new customers. Rebate payments are scheduled twice a year and will be deposited as cash into the accounts in which the related fund shares are held. The first payment is planned for June 2004 based on eligible mutual fund holdings from December 4, 2003 through May 31, 2004.
Rebate payments will be calculated at the end of each six-month holding period by multiplying the customer's daily net asset value for each fund in the program by the 12b-1 and/or service fee rate paid to E*TRADE Securities, then calculating an amount equal to 50 percent of that number. Daily amounts will then be totaled to determine the amount of the rebate.
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