In the financial services world, open architecture
refers to the technology that allows multiple service providers to communicate
and share data electronically. It's often used for retirement plan administration,
because it allows continual transmission of files - a constant flow of
up-to-date plan information between the plan sponsor's payroll, participants,
third-party administrators, plan investment companies, and investment
advisers. It's a way to bring together data from multiple service providers
and investment providers for a plan or a trust, or even a high-net-worth
individual.
There IS a difference among open architecture platforms.
MSCS offers you access to mutual funds in virtually every investment style
through multiple distribution channels, managed by some of the world’s
leading mutual fund companies, MSCS doesn't offer proprietary investment
products, so you are free to choose from thousands of mutual funds managed
by some of the best minds on Wall Street as well as stocks and bonds through
Individually Directed Accounts, Exchange Traded Funds, as well as Individually
Managed Accounts.
Open-architecture is a way to increase competitiveness, retain Customers
and attract new accounts. Access to MSCS enables our Customers to help
meet the increasingly diverse needs of plan sponsors and their participants.
Highlights of MSCS’ Open Platform
Mutual Funds: With MSCS you have access to over 460 fund
families and thousands of funds via FundServ and NSCC’s Defined
Contribution & Clearing Services (DCC&S). Clearing through NSCC
allows you to offer an almost unlimited choice of mutual funds with the
ease of a single net settlement.
Individually Directed Accounts (IDAs): Our Customers
can offer their clients Individually Directed Accounts via our automated
custodial interface which links with some of the largest discount brokers
with many of the full service Broker Dealers of their choice.
Individually Managed Accounts (IMAs): MSCS’ unique
end-to-end technology offers institutions a fully automated solution to
provide managed portfolios of mutual funds. Features include automatic
rebalancing, full AIMR standard performance reporting and access to some
of the leading portfolio strategists in the industry. Individually Managed
Accounts provide investors with the option to have all or part of their
assets professionally managed in accordance with their personal risk tolerance.
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