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Products April 5, 2013
MFS Rolls Out Lower-Cost Class R5 Shares
MFS Investment Management has rolled out Class
R5 shares, offering a lower-cost investment for advisers and plan sponsors.
Reported by Kevin McGuinness
MFS rolled out the shares for 40 of the firm’s U.S. mutual funds. Class R5 shares, unlike many other share classes, do not pay sub-accounting fees and therefore pass on lower expenses to retirement plan participants.
“Retirement savers and plan sponsors are driving demand for lower-cost investment options in 401(k) and other qualified retirement plans,” said Ryan Mullen, head of MFS’ Defined Contribution Investments group.
The shares offer advisers and plan sponsors flexibility, choice and pricing transparency when constructing retirement plan investment rosters, three factors important to retirement plan construction, Mullen noted.