AIM Distributors has added a new R share class to 21 of its mutual funds. The R shares are no load and carry a 12b-1 fee of 50 basis points to compensate registered representatives selling AIM funds to small and medium defined contribution plans.

Michael Cemo, CEO of AIM Distributors, defines the small to medium plan market as those with $1 million to $5 million in assets. He expects that larger plans will continue to use A shares.

"We’ve had an institutional share class that had no 12b-1 fee that we thought would be useful, but we found the intermediaries wanted a fee," said Robert Graham, CEO of AIM Management Group.

Many of the registered reps who AIM works with cater to smaller plans and needed a mechanism to be compensated, Cemo said.

The new share class mirrors a similar offering by Invesco Funds, another AMVESCAP company.

Subscribe Now

Access to premium content including in-depth coverage of mutual funds, hedge funds, 401(K)s, 529 plans, and more.

3-Week Free Trial

Insight and analysis into the management, marketing, operations and technology of the asset management industry.