Lord, Abbett & Company has introduced three new share classes for several of its mutual funds: F, R2 and R3. Also, the firm has reclassified Y shares as I shares.
The reason for the changes, according to Steve Lipper, director of retirement marketing, is to reach more investment platforms like wrap programs and retirement plans. "Lord Abbett expects these changes will provide investors and advisors with greater choice, encouraging a broader distribution of the firm's mutual funds," Lipper says.
Class F shares will be offered in connection with fee-based and advisory programs and R shares to certain retirement plans, while Class Y shares are now offered as Class I shares to conform to the common industry terminology for institutional shares.
"As more advisors are looking to the 401(k) market as a growing market with the shrinking of defined-benefit plans and other opportunities, the pricing that we had was missing some brokers and advisors serving the [mid-level 401(k)] market," explains Lipper.
