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Subject:  Re: New 401k Plan Date:  6/4/2005  1:48 PM
Author:  pauleckler Number:  46336 of 88064

"The R-5 is listed as the class of the fund, other than that I am not really sure. For instance, the Putnam funds all seem to be Class Y. The American Funds all seem to be Class R-5. Not sure what that really means though as I haven't found a breakdown of different classes."

Just for reference, in mutual fund parlance, A shares are front loaded, B shares are back loaded, C shares are usually low back loaded but funded by 12b-1 fees and become A shares after some period.

Class Y shares are usually called advisor shares. They probably have a special negotiated rate. Or they may have extra large minimums and then extra low expense ratios (such as Vanguard's Admiral shares).

I have not heard of Class R, but again it is probably a special rate.

They all refer to the fee structure by which the people who run the account are compensated for the role they play in selecting that fund for your plan. Usually the fees involved cost you a fraction of a percent, but sometimes they can be higher. That's why you want to check them out.

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