These additions are meant to bring more efficiency to the advisor, David Liebrock, executive vice president, Fidelity Investments’ Advisor 401(k) platform, told PLANSPONSOR.com.
One addition is the PlanSponsor Link, which Liebrock said is meant to help advisors move through the sales and transition processes more efficiently. The program allows advisors to customize a Web site for each prospective plan sponsor by adding company logos or highlighting information, such as education, that is important to the prospect’s specific needs. The program also allows for documents to be posted online, making the conversion to Fidelity from the former provider more efficient. The PlanSponsor Link has an electronic signature capability so documents can bepre-filled with known data and sent back to the advisor. Posting the document online will allow for the plan sponsor, advisor, and compliance department to all examine the material together, although in different locations, Liebrock said.
Another new offering is the inclusion of Institutional Class shares of mutual funds that do not have any 12b-1 fees, which will allow their use by advisors who wish tooffer plan sponsor clients negotiated pricing that does not include asset-based fees. These share classes are available on both proprietary and non-proprietary funds and are offered currently on 230 funds from over 30 fund families, according to Liebrock.
Fidelity also added 57 Class A mutual fund options, including six Fidelity Advisor Funds, to its Advisor 401(k) Platform, including funds from two fund families new to the program, bringing the total number of Class A funds offered through the platform to 227, from 31 fund families.
Retirement Quick Check is also being introduced on the Advisor 401(k) platform, an online tool to help participants gauge whether their retirement savings will meet their spending needs in retirement. The tool allows participants to estimatehow long their income will last before a potential shortfall may occur and suggests strategies for improving their income plan.
Advisor 401(k) is offered through advisors to small- and mid-sized companies and currently serves more than 2,100 plans, 352,000 participants and recordkeeps $12.6 billion in assets.