MFS rolled out the shares for 40 of the firm’s U.S. mutual funds. Class R5 shares, unlike many other share classes, do not pay sub-accounting fees and therefore pass on lower expenses to retirement plan participants.
“Retirement savers and plan sponsors are driving demand for lower-cost investment options in 401(k) and other qualified retirement plans,” said Ryan Mullen, head of MFS’ Defined Contribution Investments (DCI) group. “With the broad availability of Class R5 shares, MFS is well-positioned to continue to offer competitive funds—from both a performance standpoint, as well as a pricing standpoint—for the retirement plan marketplace.”
Mullen added that the shares offer plan sponsors and advisors greater flexibility, choice and pricing transparency when constructing retirement plan investment rosters—three factors critically important to retirement plan construction.