Alliance Eases Use of ETFs as Retirement Plan Investments
McLean, VA, 06/23/10
Folio Institutional today announced that New York-based RPG Consultants has become a new third party administrator option for Folio's financial advisor clients. This new strategic relationship will facilitate advisors' use of exchange-traded funds (ETFs) in 401(k) plans and other types of defined contribution retirement plans.
Folio Institutional and RPG individually service retirement plan sponsors and advisors nationwide as custodian and record keeper, respectively. The RPG401k solution will integrate with Folio Institutional's unique investment platform to provide retirement plans with true open architecture, featuring an array of ETF and mutual fund investment choices. Financial advisors are empowered with the ability to select from an assortment of funds, including the ability to create managed strategies of ETFs.
"We believe that employees who are in 401(k) plans should be given cost effective and easily understood investments from the widest range of choices that their plan's financial advisors can provide, and that employers should have the same cost effectiveness in a seamless operational and administrative platform," said Alvin Rapp, RPG Consultants' founding partner. "We encourage advisors to take advantage of the features that our platform provides, including the capability of our record keeping system to allow the advisor to develop asset allocations and other managed models using cost-effective ETFs."
The FOLIO Institutional / RPG401(k) solution eliminates direct trading fees and commissions typically associated with retail ETF purchases, by utilizing the RPG-devised, fully automated, daily valuation administrative and recordkeeping program. The option of including low-cost ETFs in defined contribution and defined benefit plans means that advisors can ensure that employers and participants enjoy lower overall plan fees.
"While not specific to ETFs ─ an advisor can build a menu consisting of no-load or load-waived mutual funds, stocks, ETFs, or model allocations of all these securities ─ our solution recognizes the increasing popularity of incorporating ETFs into defined contribution plans," said Alan Smith, Vice President of Retirement Services at Folio Institutional. "We've combined Folio Institutional's commission-free trading platform with RPG's powerful recordkeeping system to offer solutions with transparently low fees".
About Folio Institutional
FOLIOfn Investments Inc. delivers innovative investment solutions to financial professionals and institutions through Folio Institutional. At the core of all Folio Institutional products and services is its propriety trading platform. Folio Institutional enables users to manage stocks, ETFs, and mutual funds as integrated investment portfolios ("Folios") that deliver better control, greater transparency, and lower cost. Advisors can create their own Folios, much like creating customized ETFs or mutual funds, and make them available to investors. They can also access over 100 Ready-to-Go Folios representing market indices, sectors, geographical regions, target dates, and more. Ready-to-Go Folios can be managed or unmanaged and are made available by FOLIOfn Investments Inc., a registered broker dealer, and are not registered investment companies. FOLIOfn Investments Inc. does not provide investment, tax, or legal advice. FOLIOfn Investments Inc. is a member of FINRA/SIPC. For more information, please visit http://www.folioinstitutional.com/.
About RPG Consultants
RPG Consultants offers full-service retirement planning with an emphasis on defined benefit, defined contribution and 401(k) programs, complex pension strategies (including select comparability designs), non-qualified deferred compensation programs, cafeteria plans and plans covered by the Davis-Bacon Act. The firm handles the administration service requirements, including daily and quarterly valuation record keeping capabilities and cafeteria plan flexible spending accounts. RPG Consultants is a "non-producing" third-party administrator (TPA), and does not market or sell investments. More information is available at: http://www.rpgny.com/.
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Contacts:
Mark Bagley of Folio Institutional,
703-245-4871 or bagleym@FolioInvesting.com
Michael Sanders of RPG Consultants,
212-947-4800, ext. 224, or michael.sanders@rpgny.com
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