While the Department of Labor’s fiduciary rule has generated no shortage of discussion centered around advisors and their clients, an under-acknowledged secondary shift merits attention too. Although portions of the regulation may be diminished amid an ongoing review by the Trump administration, it will still affect actively managed mutual funds and their performance —in a surprisingly positive way.

If an advisor can make the case for active management, there’s nothing wrong with using actively managed funds. And as broker-dealers shift to being compensated by levelized commissions outside of the funds — even if the consumer still pays a 1% fee via the broker-dealer equivalent to the 1% trail in a C share — the mutual fund itself will no longer have to count the broker’s compensation against his/her own performance.

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