California-based 401kDirect, a provider of retirement plan administrative services, has launched a programme that aims to give advisers, TPAs and plan sponsors easy, cost effective acce
California-based 401kDirect, a provider of retirement plan administrative services, has launched a programme that aims to give advisers, TPAs and plan sponsors easy, cost effective access to exchange-traded funds.
The ETFs will be available for 401k, 457 and 403b plans on the 401kDirect platform by means of the Mid Atlantic ETFxChange Program.
The firm says that until now including ETFs in a daily valued retirement plan has been administratively inefficient and cost prohibitive. The ETF programme offered through 401kDirect and Mid Atlantic Trust aims to eliminate many of the administrative challenges that ETFs once brought to daily record-keepers.
Other features of the programme include: low fixed trading costs; ability to trade like mutual funds; NAV pricing; virtually unlimited daily trading available; ability to be offered alone or with traditional mutual funds; ability for TPAs and advisers to create 12b1 pay outs 0-100bps; offered in bundled and un-bundled 401kDirect programmes.
‘We are excited to bring this programme to our clients,’ says David Wade, president of 401kDirect. ‘Our advisers and TPAs will now be able to take advantage of the benefits of ETFs and construct diverse investment portfolios using ETFs, mutual funds, CIFs or any combination of these investment vehicles. They will be able to build a portfolio that best meets the needs of their clients, and most importantly, will be able to do so in a low fixed cost environment.’
