The new share class, which represents the lowest in the fund family in terms of cost for defined contribution investment only (DCIO) institutional funds, is designed for DC and defined benefit (DB) retirement plans as well as other institutional clients, such as endowments and foundations. The shares allow plans additional flexibility in structuring their fees and expenses.
The new share class responds to the needs of the marketplace and to the firm’s DCIO business, said Paula Smith, vice president and head of DCIO products at ING U.S. Investment Management. “The shares support registered investment advisers who are seeking to best service their retirement plan clients as well as our institutional business broadly,” Smith said. “R6 shares are lower cost and respond to the Department of Labor [DOL]’s ‘service provider’ fee disclosure requirements.”
The R6 shares are available for nine funds, including the ING Small Cap Opportunities Fund, ING Mid-Cap Opportunities Fund, ING Large Cap Growth Fund, ING Large-Cap Value Fund and ING Intermediate Bond Fund. Additional funds may be added.
The R6 shares have no front-end sales charge, no 12b-1 fees and no third-party service fees. There are no minimums for investors in retirement plans. Certain nonretirement accounts will require a $1 million minimum investment.
Plans eligible for R6 shares include DC plans such as 401(k)s, 403(b)s and 457s. The R6 shares will also be made available to existing ING funds of funds in order to realize cost savings for those shareholders. Ineligible plans include individual retirement accounts (IRAs), SEPs (simplified employee pensions), SIMPLEs (savings incentive match plans for employees) and individual 403(b) accounts.