Open architecture means that the investment platform is not limited to a small, pre-determined list of fund families. To the contrary, there is a great deal more latitude. As the global economy becomes more complex, asset allocation has broadened as well. Therefore, it is important to be able to offer a variety of different types of funds.
Further, offering institutional share class funds helps plan sponsors reduce expense incurred by their plan participants. We advocate open architecture in most instances for the following reasons:
- Increased flexibility
- Greater transparency
- More choice
- Lower cost