“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.