The R6 share class will be added to 59 of Franklin Templeton’s U.S. retail funds, primarily those that are currently on defined contribution investment-only (DCIO) platforms or that have been earmarked as of potential interest to the DCIO market.
Franklin Templeton is launching the share class to address the demand in the defined contribution market from plan sponsors, recordkeepers and intermediaries who are seeking more choice and flexibility with respect to share class offerings, and particularly with respect to low-cost retirement share classes. Class R6 shares will have no front-end sales charge, no Rule 12b-1 fee and no third-party servicing fees. There are also no investment minimums for eligible retirement plan investors.
“The global retirement markets are an area of corporate focus and, as an investment-only provider, it is critical that we evolve our U.S. defined contribution business to meet the unique needs of our clients that serve this marketplace,” said Dan O’Lear, executive vice president and head of Retail Distribution – North America for Franklin Templeton.