Page 42 - DCAC December 2024 Files

Understanding Fiduciary Responsibilities

Fund Manager Costs: Share Classes

Revenue Sharing from Funds – when utilized to play plan expenses

• Revenue sharing is a portion of the fund expense which is sent to the plan to help the plan pay plan expenses

• Higher percentages of revenue sharing increases the cost of the fund and reduces the performance of the fund

• It is an easy method of paying plan expenses. However, under this method plan participants may not share equally in the cost of
the plan. Those with higher balances and those using higher revenue sharing funds can be more highly impacted.

• Employees do not see or know how much revenue sharing they pay in each fund

Example of Share Classes and Fees

Fund Name / Share Class Management Fee Revenue Sharing Total Fees

Retained by mutual fund company for Paid to Plan for plan services or
investment management paid to broker

American Funds EuroPacific Growth R1 0.48% 1.10% 1.58%

American Funds EuroPacific Growth R2 0.46% 1.10% 1.56%

American Funds EuroPacific Growth R3 0.47% 0.65% 1.12%

American Funds EuroPacific Growth R4 0.46% 0.35% 0.81%

American Funds EuroPacific Growth R5 0.46% 0.05% 0.51%

American Funds EuroPacific Growth R6 0.46% 0.00% 0.46%

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