1st Global Capital Corp. ("1st Global") offers many mutual funds to investors. We believe it is important that our registered representatives evaluate these funds in order to assist investors in selecting those that best meet their needs. We currently offer mutual funds sponsored by more than 100 companies. Because there are more than 8,000 mutual funds available for sale in the United States, we focus on a select group of some of the largest and most well-known mutual fund families that offer a broad spectrum of investment products. This group of fund families has greater access to our representatives to provide training and other educational presentations and product information so that they can serve investors better. These fund families are participating in our Premier Partner Program.
The following fund families currently participate in the Premier Partner Program: AIM, Fidelity Funds, John Hancock, Oppenheimer, Phoenix Funds and Prudential Investments, LLC.
In addition to the customary sales charges in connection with sales of mutual funds, Premier Partners make payments to 1st Global to participate in the program. First, 1st Global receives a payment of up to 0.68 percent (68 basis points) of an investor's total purchase amount of a mutual fund through a 1st Global registered representative (the "Gross Sales Payment"). If, for example, an investor invested $10,000 in a fund, 1st Global would be paid up to $68. Second, for as long as the investor holds that fund or another fund within the same fund family into which he or she has exchanged, 1st Global will receive an additional payment, paid quarterly, of up to 0.1 percent (ten basis points) per year of the amount held (the "Assets Under Management Payment"). For example, on a $10,000 holding 0.1 percent is $10. Third, 1st Global receives flat amount payments of up to $27,000 per year (“Flat Amount Payment”). These payments are made by the mutual fund's distributor, investment advisor or other related entity. The participants in the Premier Partner Program and/or their affiliates make aggregate payments based on the formula set forth above.
Registered representatives of 1st Global do not receive additional selling compensation in connection with sales of mutual funds offered by our Premier Partners, as opposed to other mutual fund families.
