September 27, 2012
--- With the
expansion of its Class I Shares lineup to 21 funds, OppenheimerFunds aims to
provide greater transparency into defined contribution (DC) plan fees. ---
“The recently enacted 401(k) fee disclosure rules have
elevated the role of institutional investment consultants and advisers in
helping clients both minimize defined contribution plan fees and present them
clearly to plan participants,” said Kathleen Beichert, senior vice president of
retirement marketing. “OppenheimerFunds has expanded its I Shares lineup to
offer greater choice to plans that prefer to pay advisory and recordkeeping
fees separately with an eye toward making fee details more transparent to
retirement savers.”
OppenheimerFunds has also introduced services to help
financial advisers benchmark and optimize their plans. “We expect the
implementation of fee disclosures to cause some disruption in the market as
plans review their recordkeeping, investment and advisory relationships,” said
Beichert.
Demand for Class I shares has also been fueled by
institutional clients and the consultants that serve them, Kim Mustin,
Oppenheimer’s senior vice president and head of global strategic accounts,
said.
Among Oppenheimer fund share classes, I Shares generally
carry the lowest expense ratios and do not charge 12b-1 or sub-transfer agency
fees. Class I shares are only offered to eligible institutional investors that
make a minimum initial investment of $5 million or more (waived for retirement
plan service provider platforms). Class I shares are sold at net asset value
without a sales charge.