The shares, to be offered through defined contribution (DC) and defined benefit (DB) pension plans, are being introduced in response to demand by plan sponsors, retirement plan platforms and advisers for lower-cost fund options that charge only an investment advisory fee and other fund expenses, and are free of 12b-1 or other shareholder servicing fees.
In keeping with last year’s fee disclosure regulations from the Department of Labor (DOL), the R shares will enable plan sponsors to separate mutual fund expenses from their recordkeeping and other service provider fees when determining if fees paid for plan services are reasonable.
“In the wake of increased fee disclosure, we are seeing a growing interest by the market for institutionally priced mutual fund share classes,” said Rocco DiBruno, managing director/retirement group director for Thornburg.“ We expect the demand for low- or no-revenue shares to grow steadily over time, and want to provide plan sponsors and advisers with a number of pricing structures across our suite of mutual funds.”
For more information, visit www.thornburginvestments.com or call (877) 215-1330 ext. 7214.