MATC Lowering Price of Investment Management Platform

Mid Atlantic Trust Company (MATC) is offering reduced pricing for its ModelxChange service.   

The lower pricing is due to the increased number of 401(k) accounts being placed on ModelxChange, according to MATC.  Previously priced at 15 basis points, the new price is a flat fee of 3.5 basis points. This includes unlimited trading, portfolio rebalancing, and fund or ETF swaps.

ModelxChange was launched by MATC in December 2010 (see “New Investment Management Platform for 401(k)s”).  The platform allows 401(k) professionals to incorporate mutual fund and/or ETF investment models into a retirement plan through a single, Web-based interface that allows for the creation, execution, and on-going management of investment models for a 401(k) plan.  Managers can set-up and manage their investment models on ModelxChange and then deliver those models and the investment changes to each individual plan.   

MATC says ModelxChange can deliver numerous benefits to the 401(k) investment adviser, including access to a stable of third-party money managers who can provide models comprised of ETF’s and/or mutual funds.  To aid in the due diligence screening process, Mid Atlantic provides manager profiles, descriptions, performance data, and other details of each model, reducing the amount time required to review the myriad of data in order to make an effective choice for a client.   

ModelxChange is an outgrowth of its predecessor ETFxChange, which also has a reduced price. For those still using ETFxChange where ETFs are a stand-alone investment vehicle in a 401(k) plan, Mid Atlantic Trust will be extending a new price schedule starting this month.