The classes of share in funds - sometimes conferring different voting rights, or which can be more or less expensive than others - are being changed by a large swathe of the US investment industry, a survey finds.

A survey of among US investment management houses shows that almost 60 per cent of them plan to modify their share class offerings, such as R6 categories which don't come with a sales charge.

The findings come in Cerulli Associates’ 2015 Business Strategy Survey. It found that of those firms planning to change share classes, 24 per cent intend to add share classes, while the same percentage – 24 – aim to move away from classes such as B-shares and higher 12b – 1 classes. The remaining 12 per cent of those planning changes intend to modify their offerings in some ways, such as consolidating share classes. (B class shares are forms of common stock that hold fewer voting rights than A class shares.)

Investment houses can adjust share classes of funds to increase liquidity, encourage more turnover and stay competitive.

Among other data from the Cerulli Associates report, it said that asset figures increased in July, with mutual funds ending the month up 0.1 per cent at $12.5 trillion and exchange traded funds up 1.4 per cent to $2.1 trillion.

Progress in the second half of 2015 has not been so impressive, the report said. During July, some $11 billion was taken from mutual funds, taking down the year-to-date total down to $113.7 billion.

ETFs rebounded from a dip in assets during June, and reaped flows of $25.3 billion in July.
     
Low-fee passive institutional strategies experienced significant outflows in the second quarter of this year.