T. Rowe Price has added adviser share classes on four of its funds, thereby expanding its total adviser class lineup to 24. One of the funds, the T. Rowe Capital Opportunity fund, has also been given an R share class, making it eligible for sale in fee-based retirement plans. The company's complete lineup of R class funds is now 13.
The other three funds now included in the Advisor Class lineup are the T. Rowe Real Estate, Short-Term Bond and Capital Appreciation funds.
T. Rowe Price's adviser class shares have a 25 basis-point 12b-1 fee, while the R shares have a 50 basis-point 12b-1 fee.
The new share classes enable T. Rowe to sell its funds through fee-based advisers and retirement plan providers by paying them through these 12b-1 fees, noted John Cammack, director of third-party distribution for T. Rowe. Ever since the company began selling through financial advisers, broker/dealers, banks and other intermediaries in March 2000, the funds "have been well received," Cammack noted.