American Funds Introduces Multi-fund RK Tool

AmericanFunds rolled out a multi-fund version of its Recordkeeper Direct tool, with the goal of providing advisers more investment and pricing flexibility.

Recordkeeper Direct offers more than 80 investment choices from 20-plus investment managers in addition to the American Funds lineup.

The original Recordkeeper Direct was designed to handle the micro market, where a typical plan has less than than 20 participants and under $1 million in assets, according to Bill Anderson, director of retirement plan services at American Funds.

“With many plans, [the] sponsors and participants wind up paying more in recordkeeping fees each year as the assets in the plan increase,” Anderson said.

The multi-fund version is a tool for the $1 million to $20 million market, with recordkeeping fees based on a fee of $2,500 per plan and $50 per participant.