Products September 18, 2007

BenefitStreet Expands 401(k) Platform to Include Mutual Funds

BenefitStreet Inc. has introduced a new 401(k) platform that will enable investors to choose both exchange traded funds (ETFs) and mutual funds in the same plan.
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The latest version of the company’s 401(k) platform is now available to plan sponsors and independent advisers to incorporate a range of 401(k) investment vehicles, including index-tracking ETFs, index mutual funds, and actively managed mutual funds.

According to a BenefitStreet press release, traditional 401(k) recordkeeping systems were designed to allow incremental investments in mutual funds and other products that do not trade in whole shares on an exchange. BenefitStreet’s recent introduction of its ETF-only 401(k) platform addressed this technology issue to enable direct, incremental investments in ETFs. The platform aggregates ETF orders across all plan sponsors and places trades at the fund level to reduce trading costs at the participant level to a fraction of a penny, the announcement said.

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“The new platform removes the roadblocks that kept 401(k) participants from having access to ETFs,” said Jim Drury, CEO of BenefitStreet, in the press release. “Participants in 401(k) plans should have every investment opportunity open to them, and we believe it is the fiduciary responsibility of plan sponsors to ensure that choice.”

In May, BenefitStreet announced it would offer Barclays Global Investors’ iShares exchange-traded funds (ETFs) on the 401(k) platform (see BenefitStreet Offers Barclays’ iShares on New 401(k) Platform) and earlier this month, Reliance Trust Company was added as a custodian to the BenefitStreet ETF 401(k) solution (see Reliance Signs on as Custodian for BenefitStreet ETF 401(k) Platform).

Deals & People September 18, 2007

Fiduciary360 Taps Aikin as CEO

Fiduciary360 has announced that founder and former CEO Donald B. Trone will focus his efforts on the now independent Foundation for Fiduciary Studies.
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Trone maintains the President title at the foundation, while Blaine F. Aikin as been named CEO of Fiduciary360, an organization promoting fiduciary responsibility, according to a company announcement. “I am excited to be leading (Fiduciary360) into its very promising future,” said Aikin.

The announcement said the move is the result of a long-contemplated decision by the Sewickley, Pennsylvania-based Fiduciary360 to further separate operations of its training and Web-based tools services from the research-based foundation.

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The news release said the change also gives Trone, 53, a greater opportunity to focus his time on researching and improving the fiduciary industry’s best practices.

Aikin, 53, joined Fiduciary360 in March 2005 as the Director of Training. Aikin received his Masters of Public Management and Policy degree from the Heinz School of Carnegie-Mellon University.

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