Folio Institutional and ABG Carolinas Introduce Folio(k)
March 9, 2010 (PLANSPONSOR.com) - Folio Institutional and Alliance Benefit Group Carolinas have teamed up to offer Folio(k).
A press release said Folio(k) is a 401(k) platform offering
transparency, customization, simplicity, and low cost. The platform is a
turn-key 401(k) solution - including custody, trading, recordkeeping, and
administration - and is available for a fee of 95 basis points.
Plan sponsors and their advisers can make their primary
investment choices from a set of various risk-adjustable, Target Date Folios – pre-designed
portfolios of Exchange-Traded Funds (ETFs). According to the announcement, the
Target Date Folios reflect a far broader level of diversification than
traditional target-date funds, investing in international equities,
commodities, and TIPS, in addition to traditional domestic equities and fixed
income.
The Target Date Folios are created with varying risk
levels, including conservative, moderate, and aggressive.
Advisers may periodically rebalance account holdings and
have the option of using Folio(k)’s updated model portfolio data as a resource.
They can rebalance, add or delete securities, or change the weightings across
all accounts with one click. An entire basket of securities can be traded in
one transaction with no commissions, transaction fees, or ticket charges.
Fees covering all trading, custody, recordkeeping,
compliance, and administrative functions total just 70 basis points, and with
the addition of the ETF expense ratios, the total cost is less than 1 percent
of plan assets (approximately 95 basis points). The announcement said the
low-cost structure allows advisers to add an appropriate management fee and
still offer a bundled 401(k) solution at a highly competitive price.
ABG Carolinas is providing all administration and
recordkeeping for Folio(k). The program operates 100% online. Participant
enrollment, statements, investment requests, employer reports, and materials
are all delivered over the Internet.
For more information,
contact Folio Institutional at 888-485-3456 or info@folioinstitutional.com, or
go to www.folioinstitutional.com/foliok/advisors.jsp.
Rebecca Moore
editors@plansponsor.com