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Expenses
Choosing a Share Class
Reducing Your Sales Charge on Class A shares
We offer four types of shares within the RS Investment Trust: Class A, Class B, Class C and Class K. For each class, expenses and sales loads vary. Based on the amount you plan to invest, and how long you plan to hold your shares, you select the class of shares that is best suited to you. Not all Funds offer all classes of shares. Certain of the Funds also offer Class Y shares. Class Y shares are available for purchase by: (1) institutional investors, such as retirement plans, companies, foundations, trusts, endowments, and other entities where the total amount of potential investable assets exceeds $50 million, that either were introduced to the Funds by a financial intermediary that has entered into special arrangements with GIS relating to Class Y shares or were not introduced to the Funds by a financial intermediary; (2) a trustee or custodian under any deferred compensation or pension or profit sharing plan or payroll deduction IRA established for the benefit of the employees of any company with an account(s) in excess of $10 million managed by RS Investments or its affiliates on a private-advisory-account basis; (3) officers, directors, and employees of RS Investments and its affiliates and their family members and current and former Trustees of the Trust and their family members; or (4) investors purchasing shares in a Fund outside of broker-dealer retail distribution channels (including, without limitation, wrap-fee programs operated through such channels) who make a minimum investment in that Fund of $1 million through a single account, and do not cause that account’s investment in the Fund to be less than $1 million. If you own Class A shares of an RS Fund outside of broker-dealer retail distribution channels and satisfy one of the conditions for purchase of Class Y shares set forth above, you may be able to convert the Class A shares held by you into Class Y shares of that Fund. All determinations as to eligibility of an investor to purchase Class Y shares of a Fund will be made by RS Investments in its sole discretion.
Expenses
There are two types of expenses related to mutual funds: expenses you pay directly (called a sales load) and expenses that are deducted from fund assets.
Expenses you pay directly
There is a one-time charge that you may pay upon either purchase or sale of Class A, Class B, or Class C shares of a Fund. At purchase it is called an "initial sales load;" at sale, a "deferred sales load." These charges provide compensation to Guardian Investor Services LLC, the Fund's principal underwriter ("GIS"), in connection with the sale of the Fund's shares to you. They do not cover any fee your broker or agent may charge you for helping you buy shares in the Funds.
Expenses you pay through the Funds
The costs of managing and administering a Fund are spread among shareholders of each class of shares. These operating costs cover such things as investment management, distribution (12b-1 fees) and shareholder servicing, custody, auditing, administrative and transfer agency expenses, and fees and expenses of Trustees.
12b-1 Fees
To compensate GIS for the services it provides and for the expenses it bears in connection with the distribution
of Fund shares, the Class A, Class B, Class C, and Class K shares of the Fund make payments to GIS under a distribution plan adopted pursuant to Rule 12b-1 under the 1940 Act (the "Plan"). The Plan is a compensation plan that provides for payments at annual rates (based on average daily net assets) of 0.25% on Class A shares, 1.00% on Class B and Class C shares, and 0.65% on Class K shares. Because Rule 12b-1 fees are paid out of the Funds’ Class A, Class B, Class C, and Class K assets on an ongoing basis, they will increase the cost of your investment and may cost you more than paying other types of sales loads. For example, the higher Rule 12b-1 fees for Class B, Class C, and Class K shares may cost you more over time than paying the initial sales load for Class A shares. Because Class C and Class K shares, unlike Class B shares, do not convert to Class A shares, Class C and Class K shares may cost you more over time than Class B shares. All shareholders of Class A, Class B, Class C, and Class K shares share in the expense of Rule 12b-1 fees paid by the Fund; however, because these shareholders hold their shares through varying arrangements (for example, directly or through financial intermediaries), they may not share equally in the benefits of the Plan.
In addition to payments under the Plan, certain of the Funds reimburse GIS for payments GIS makes to financial intermediaries that provide certain administrative and account maintenance services. The amount of the reimbursement is calculated in a manner approved by the Trustees and is reviewed by the Trustees periodically.
RS Investments may perform certain services and incur certain expenses with respect to the promotion of Fund shares and the servicing of shareholder accounts, including payment of salaries and expenses for employees whose activities include the promotion of Fund shares and/or the servicing of shareholder accounts. GIS pays out of the amounts it receives from the Funds pursuant to the Plan any amounts payable with respect to expenses incurred by RS Investments, GIS, or third parties, with respect to the marketing, distribution, or promotion of the Funds or the servicing of shareholder accounts; provided, however, that if there is an inadequate amount under the Plan to make payments in full to third parties, RS Investments, and GIS, the amounts shall be applied first to pay in full any third party and then allocated on a pari passu basis between RS Investments and GIS.
During some periods, fees paid under the Plan may be insufficient to pay GIS and RS Investments fully for their promotional expenses. In such cases, GIS and RS Investments will be paid to the extent of any excess of amounts received under the Plan in future periods. Such payment will first be paid to GIS and RS Investments on a pari passu basis and then to RS Investments.
Because the Funds pay distribution and other fees for the sale of their shares and for services provided to shareholders out of the Funds’ assets on an ongoing basis, over time those fees will increase the cost of your investment and may cost you more than paying other types of sales loads.
A Fund may pay distribution fees and other amounts described in this Prospectus at a time when shares of that Fund are unavailable for purchase.
| |
Front-end |
12b-1 |
Back-end |
| Class A shares |
Yes |
Yes |
No1 |
| Class B shares |
No |
Yes |
Yes |
| Class C shares |
No |
Yes |
Yes |
| Class K shares |
No |
Yes |
No |
|
1A deferred sales charge will apply to purchases of $1 million or more if redeemed within 18 months of purchase.
Choosing a share class
You can choose from up to four share classes when you purchase a Fund: Class A, Class B, Class C, or Class K, although Class K shares are available only to certain institutional investors or qualified retirement plans such as 401(k) plans. Not all Funds offer all classes of shares.
The different share classes have different expense structures and eligibility requirements. You should choose the cost structure that best meets your needs for which you are eligible. Some factors to consider are the amount you plan to invest, the time period before you expect to sell your shares, and whether you might invest more money in the Funds in the future.
When you buy Class A shares, the initial sales load is deducted from the amount you invest, unless you qualify for an initial sales load waiver (which could make you subject to a contingent deferred sales load in some cases). This means that less money will be invested in the Fund immediately. Class B and Class C shares do not have initial sales loads, but you may pay a contingent deferred sales load if you sell your shares, and you will have higher ongoing operating expenses than you would with Class A shares. You should also bear in mind that Class B shares automatically convert to Class A shares after approximately eight years. Class C and Class K shares do not convert to another class.
The chart below summarizes the features of the different share classes. This chart is only a general summary, and you should read the description of each Fund's expenses in each Fund Summary in the Prospectus. You should also consider the effects of any available sales loads waivers.
The minimum purchase amount may be waived by GIS (as distributor), RS Investments, or the Trust for specific investors or types of investors, including, without limitation, retirement plans, employees of RS Investments and its affiliates and their family members, and current and former Trustees of the Trust and their family members. The Trust or RS Investments may change or waive the minimum purchase amounts at any time, or from time to time, at its discretion.
RS Investments reserves the right to redeem shares in any account with a value of less than $2,000 due to shareholder redemptions. You will be allowed 60 days to make an additional investment to meet the minimum balance before the account is liquidated. The account balance minimum does not apply to IRAs or other retirement accounts, Coverdell Education Savings Accounts, Uniform Gifts/Transfers to Minors Act accounts, or Systematic Savings accounts.
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Minimum
Initial Purchase
Amount1 |
Maximum
Purchase
Amount |
Maximum
Initial Sales
Charge (Load) |
Maximum
Contingent Deferred
Sales Load3 |
Annual 12b-1
Fee |
| Class A |
$2,500 |
None |
4.75%2 |
None4 |
0.25% |
| Class B |
$2,500 |
$100,000 |
None |
3.00%, declining
to zero over
6 years5 |
1.00% |
| Class C |
$2,500 |
$1 million |
None |
1.00%, if shares are
redeemed within 1 year
of purchase |
1.00% |
| Class K |
$1,000 |
None |
None |
None |
0.65% |
|
1A $1,000 minimum purchase amount and a $100 minimum subsequent purchase amount applies for Individual Retirement Accounts (IRAs), gift/transfer to minor accounts, automatic investment plans, and qualified retirement plans. The Trust or RS Investments, in the sole discretion of either, may waive the minimum purchase amounts. A $25 minimum initial and subsequent purchase amount applies for Payroll Deduction Accounts.
2As discussed below, initial sales charges with respect to sales of Class A shares may be waived in certain circumstances.
3 The contingent deferred sales load is imposed on the original purchase price of the shares or the current value of the shares you are selling, whichever is less. Reinvested dividends and capital gains, and amounts attributable to capital appreciation of your shares, are not subject to the contingent deferred sales load.
4 A contingent deferred sales load of 1.00% applies if Class A share purchases of $1 million or more are sold within 18 months of purchase, subject to waivers described in the Statement of Additional Information. Certain distributions will not be subject to the contingent deferred sales load, such as the return of excess contributions, loans, and required minimum distributions under the Internal Revenue Code of 1986. Please see the Statement of Additional Information for details.
5 Class B shares automatically convert to Class A shares after approximately 8 years.
The following chart outlines the class of shares offered by each of our funds.
| FUND |
Class A |
Class B |
Class C |
Class K |
| RS Emerging Growth Fund |
X |
|
X |
X |
| RS Growth Fund |
X |
|
X |
X |
| The Information Age Fund® |
X |
|
X |
X |
| RS MidCap Opportunities Fund |
X |
|
X |
X |
| RS Select Growth Fund (previously RS Diversified Growth Fund) |
X |
|
X |
X |
| RS Smaller Company Growth Fund |
X |
|
X |
X |
| RS Value Fund |
X |
|
X |
X |
| RS Partners Fund |
X |
|
|
X |
| RS Investors Fund |
X |
|
X |
X |
| RS Global Natural Resources Fund |
X |
|
X |
X |
| RS Large Cap Value Fund |
X |
X |
X |
X |
| RS Core Equity Fund |
X |
X |
X |
X |
| RS Small Cap Core Equity Fund |
X |
X |
X |
X |
| RS S&P 500 Index Fund |
X |
X |
X |
X |
| RS International Growth Fund |
X |
X |
X |
X |
| RS Emerging Markets Fund |
X |
X |
X |
X |
| RS Investment Quality Bond Fund |
X |
X |
X |
X |
| RS Low Duration Bond Fund |
X |
X |
X |
X |
| RS High Yield Bond Fund |
X |
X |
X |
X |
| RS Tax-Exempt Fund |
X |
|
X |
|
| RS Money Market Fund (previously RS Cash Management Fund) |
X |
X |
X |
X |
| RS Asset Allocation Fund |
X |
X |
X |
X |
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Reducing Your Sales Charge on Class A shares
All of the Funds offer Class A shares. When you buy Class A shares, you pay an initial sales load at the time of your investment, which is included in the offering price. This fee is deducted from the amount you invest, and the remainder of your money is used to buy shares in the Fund. In addition, Class A shares are subject to a 12b-1 fee. The 12b-1 fee associated with Class A shares is lower than the 12b-1 fees associated with Class B, Class C, and Class K shares. You may qualify for a reduction of the initial sales load based on the amount you invest, or you may be eligible to have the initial sales load waived under certain circumstances. Please see the tables below for details.
There is no initial sales load on Class A shares of RS Money Market Fund.
For all funds except RS S&P 500 Index Fund and Fixed Income Funds
| Amount of Purchase Payment |
Sales Load as a % of Offering Price |
Sales charge as a % of Net Amount Invested |
Commission of as a % Offering Price |
Concession to Dealers as a % of Offering Price2 |
| Less than $50,000 |
4.75% |
4.99% |
4.25% |
4.25% |
| $50,000 to $99,999 |
4.50% |
4.71% |
4.00% |
4.00% |
| $100,000 to $249,999 |
3.50% |
3.63% |
3.00% |
3.00% |
| $250,000 to $499,999 |
2.50% |
2.56% |
2.00% |
2.00% |
| $500,000 to $749,999 |
2.00% |
2.04% |
1.60% |
1.60% |
| $750,000 to $999,999 |
1.50% |
1.52% |
1.20% |
1.20% |
| $1,000,000 or more1 |
None |
None |
None |
None |
RS S&P 500 Index Fund
| Amount of Purchase Payment |
Sales Load as a % of Offering Price |
Sales charge as a % of Net Amount Invested |
Commission of as a % Offering Price |
Concession to Dealers as a % of Offering Price2 |
| Less than $50,000 |
3.00% |
3.09% |
2.75% |
2.75% |
| $50,000 to $99,999 |
2.75% |
2.83% |
2.50% |
2.50% |
| $100,000 to $249,999 |
2.50% |
2.56% |
2.25% |
2.25% |
| $250,000 to $499,999 |
2.00% |
2.04% |
1.75% |
1.75% |
| $500,000 to $749,999 |
1.75% |
1.78% |
1.50% |
1.50% |
| $750,000 to $999,999 |
1.50% |
1.52% |
1.25% |
1.25% |
| $1,000,000 or more1 |
None |
None |
None |
None |
RS Investment Quality Bond Fund, RS High Yield Bond Fund, and RS Tax Exempt Fund
| Amount of Purchase Payment |
Sales Load as a % of Offering Price |
Sales charge as a % of Net Amount Invested |
Commission of as a % Offering Price |
Concession to Dealers as a % of Offering Price2 |
| Less than $100,000 |
3.75% |
3.90% |
3.25% |
3.25% |
| $100,000 to $249,999 |
3.50% |
3.63% |
3.00% |
3.00% |
| $250,000 to $499,999 |
2.50% |
2.56% |
2.00% |
2.00% |
| $500,000 to $749,999 |
2.00% |
2.04% |
1.60% |
1.60% |
| $750,000 to $999,999 |
1.50% |
1.52% |
1.20% |
1.20% |
| $1,000,000 or more1 |
None |
None |
None |
None |
RS Low Duration Bond Fund
| Amount of Purchase Payment |
Sales Load as a % of Offering Price |
Sales charge as a % of Net Amount Invested |
Commission of as a % Offering Price |
Concession to Dealers as a % of Offering Price2 |
| Less than $100,000 |
2.25% |
2.30% |
2.00% |
2.00% |
| $100,000 to $499,999 |
2.00% |
2.04% |
1.75% |
1.75% |
| $500,000 to $749,999 |
1.75% |
1.78% |
1.50% |
1.50% |
| $750,000 to $999,999 |
1.50% |
1.52% |
1.25% |
1.25% |
| $1,000,000 or more1 |
None |
None |
None |
None |
1 If you purchase $1 million worth of shares or more, you will pay no initial sales load. However, in this case, if you were to sell your shares within 18 months of purchase, you would pay a contingent deferred sales load of 1.00% of the value of the Class A shares sold or the total cost of such shares, whichever is less, subject to waivers described in the Statement of Additional Information. Gross dealer concession of up to 1.00% based on the amount of the purchase payment.
2GIS or its affiliates may pay special compensation from time to time.
Qualify through our Rights of Accumulation Program:
To reduce your initial sales load, you can combine Class A purchases with your current Fund holdings. You can also include shares held by your spouse and minor children. However, you may not include shares that are not subject to a sales load. Specifically, initial sales loads are paid on Class A shares of each Fund (except RS Money Market Fund), and Class B and Class C shares are subject to a contingent deferred sales load, so these shares may be included unless the sales loads have been waived. RS Money Market Fund purchases, and shares purchased through the reinvestment of dividends or distributions may not be included. Simply notify us, Boston Financial Data Services, the Fund's transfer agent ("BFDS"), or the registered representative through whom you purchase your shares that your purchase will qualify for a reduction in the initial sales load and provide the names and account numbers of the family members whose holdings are to be included.
In some cases, a financial intermediary may hold its clients' Fund shares in nominee or street name. If your shares are held through a financial intermediary and you wish to qualify for this sales load reduction, please contact your financial intermediary.
Qualify through our Investment by Letter of Intent Program:
An investor who intends to invest over a 13-month period the minimum amount required to reduce the initial sales load on each intended purchase of Class A shares of a Fund may do so by completing the letter of intent information on the application or the Shareholder Privilege form. The initial sales load for each purchase will be at the reduced rate that would apply if the full investment were made at one time. You can include purchases by your spouse and minor children. However, you cannot include shares that are not subject to a sales load, such as RS Money Market Fund shares or shares purchased through the reinvestment of dividends and distributions. A letter of intent is not available for SIMPLE IRAs or qualified retirement plans administered by State Street Bank and Trust Company or ExpertPlan, Inc.
If you complete a letter of intent within 90 days of a prior purchase of one of the Funds (other than RS Money Market Fund), that purchase may be included under the letter of intent. In this case, an appropriate adjustment, if any, will be made for any initial sales load you paid in connection with the prior purchase, based on the current NAV.
Completion of a letter of intent does not bind a shareholder to buy the entire intended investment amount. However, BFDS will escrow shares valued at 5% of the intended investment amount to ensure payment of additional initial sales loads if the intended purchases are not made and the shareholder fails to pay the additional initial sales loads within 20 days after BFDS requests payment.
In some cases, a financial intermediary may hold its clients' Fund shares in nominee or street name. If your shares are held through a financial intermediary and you wish to qualify for this sales load reduction, please contact your financial intermediary.
For More Information
For more information about the distinctive advantages of how investing with RS Investment might help you reach your financial objectives, talk to your investment professional. He or she can help you decide which of our products may be appropriate for you. Why Work with an Investment Professional?
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