Amid the increased focus on the costs of 401(k) plans,Prudential Investments has launched a share class, Q Shares,designed for retirement plans. Prudential will not charge 12b-1fees on Q Shares, and says the shares will involve only minimaltransfer agency fees.
|“Plan sponsors are looking for a way to get more transparency onthe fees they pay on all the services provided in their retirementplan,” says Michael Rosenberg, senior vice president and head ofPrudential's investment only defined contribution group. “This iscertainly in response to that.”
|Plans eligible to use Q Shares include 401(k)s, 403(b)s, Keoghs,profit-sharing pension plans and Simple IRA plans, the companysays. Plans that currently invest in another share class of aPrudential fund can convert to Class Q shares.
|“The overriding thought here is we want to offer flexibility,”says Rosenberg. “It's not just the lowest-price-possible investmentalternative, it's putting together the right plan for the plansponsor and their participants.”
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