Pioneer’s Class K shares are designed for DC plans that are precluded from investing in mutual fund shares with Rule 12b-1 fees or sub-transfer agency fees as part of the expense ratio.
“The retirement plan market is rapidly moving toward lower-cost share classes,” said Joe Kringdon, executive vice president and head of U.S. retail sales and marketing. “This new share class offers no 12b-1 or shareholder servicing fees, and is available specifically for 401(k) and other qualified group retirement plans.”
The Pioneer mutual funds that now offer Class K shares, along with their estimated total expense ratios, are:
- Pioneer Fundamental Growth Fund (PFGKX) – 0.71%;
- Pioneer Oak Ridge Small Cap Growth Fund (ORIKX) – 0.92%;
- Pioneer Equity Income Fund (PEQKX) – 0.66%;
- Pioneer Strategic Income Fund (STRKX) – 0.62%;
- Pioneer Bond Fund (PBFKX) – 0.56%; and
- Pioneer Multi-Asset Ultrashort Income Fund (MAUKX) – 0.43%.
Class K shares are intended for 401(k) and other Employee Retirement Income Security Act (ERISA)-defined contribution plans that trade omnibus with the fund at the plan sponsor level. For qualified plans, there are no minimum purchase requirements. Class K shares also will be available to certain direct institutional investors with an initial investment of at least $5 million.