MFS Funds creates new R5 share class for 40 funds; some drop class W

By Toni Weeks

San Diego, Dec. 14 - The board of trustees of the MFS Funds has approved the creation of a new share class, R5, for 40 of the firm's mutual funds beginning in June 2012 and continuing into the first quarter of 2013, according to a press release from MFS Investment Management.

The class R5 shareholders will generally be participants in eligible retirement programs, the release said.

Class R5 shares will have no 12b-1 or sub-accounting fees.

The board also approved the discontinuation of the class W shares, which are typically offered in fee-based mutual fund wrap programs and are currently offered by 11 funds. Existing class W shareholders may convert their shares on a tax-free basis to class A or class I shares of the same fund by May 9. Those shareholders who still hold class W shares after May 9 will have their shares automatically converted to class I shares.

The investment management firm is based in Boston.

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