The shares do not charge 12b-1 service fees and have minimal Transfer Agency fees, allowing plan providers and sponsors flexibility in choosing pricing structures.
According to the announcement, a plan’s financial intermediary and/or recordkeeper will have the option to offer Class Q shares for eligible funds. Plans that decide to offer these shares may convert their current holdings in another share class of a Prudential fund to the fund’s Class Q shares. Eligible plans include 401(k) and 403(b) plans, Keoghs, Profit Sharing Pension plans and Simple IRA plans among others.
“As plan providers deal with the implementation of new government regulation for greater fee transparency, Prudential Investments is introducing the Q Share Class for select funds to help them fulfill that responsibility to plan participants,” said Michael Rosenberg, head of Prudential Investments’ Investment Only Defined Contribution group, in the announcement.