The pricing model we’ve rolled out is a direct reflection of the response we’ve seen from the qualified plan marketplace for this offering.
Pittsburgh, PA (PRWEB) October 12, 2011
Mid Atlantic Trust Company (MATC) is pleased to announce new pricing for its ModelxChange platform. The new lower pricing is due to the increased number of 401(k) accounts being placed on ModelxChange. Priced at a flat fee of 3.5 basis points, the new ModelxChangeSM pricing is a dramatic reduction from the previous pricing of 15 basis points. This all in price includes unlimited trading, portfolio rebalancing and fund or ETF swaps. ModelxChangeSM, launched by MATC in December of 2010, is the first of its kind in model management for 401(k) plans.
ModelxChange allows 401(k) professionals to seamlessly incorporate mutual fund and/or ETF investment models into a retirement plan — all through a single, web-based interface that allows for the creation, execution and on-going management of investment models for a 401(k) plan. Through its easy-to-use interface, managers can set-up and manage their investment models on ModelxChange and then deliver those models and the investment changes to each individual plan. It is an ideal solution for those Professional Money Managers, Investment Advisors, and Plan Record Keepers who want to stay on the forefront of the 401(k) marketplace and who are interested in maintaining a larger share of the generated revenues.
While discussing the new pricing model for ModelxChange, Tim Friday, Group CEO of Mid Atlantic Capital Group and President of MATC remarked, “The pricing model we’ve rolled out is a direct reflection of the response we’ve seen from the qualified plan marketplace for this offering.” Mr. Friday continued, “The adoption rate we’ve received from our existing and new clients has been tremendous, and because of the increase in volumes, our costs for ModelxChange have declined. So, we are thrilled to be able to pass along those savings directly to our customers. And, at a flat fee of 3.5 bps, advisors and managers can now predict the costs of model management much easier, and at a much lower cost to plan participants.”
For Professional Money Managers, ModelxChange uniquely provides a single system for the creation, execution and on-going management of investment models for the 401(k) marketplace. Through its easy-to-use interface, managers can set-up and manage their investment models on ModelxChange and then deliver those models and the investment changes to each individual 401(k) plan as adjustments are made to the model. Money Managers can also set security and cash targets, as well as specific investment exclusions requested by the plan fiduciary. All of the plan flows, asset levels, and detailed information related to the plan are right at the money manager’s fingertips through the easy to navigate website. Additionally, the management fee can be accrued daily and automatically paid monthly or quarterly.
ModelxChange also delivers numerous benefits to the 401(k) Plan Investment Advisor, including access to a stable of third party money managers with proven track records that are able to provide models comprised of ETF’s and/or mutual funds. Investment advisors have access to “best of breed” money managers, and Mid Atlantic has simplified the due diligence screening process for them by providing 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. Plus, with the seamless integration that ModelxChange provides for the management of the individual investment models, Plan Investment Advisors can be assured that their client’s plan is always in-sync with the Model Manager’s recommendation. Whether a 401(k) advisor wants to use a professionally managed model, or manage their own models, ModelxChange can finally bridge the operational and cost gap that historically prevented the use of models in a retirement plan.
ModelxChange also eliminates the tedious process of coordinating all of the moving parts required for Plan Record Keepers to effectively manage an investment model within a retirement plan. ModelxChange streamlines this process by seamlessly coordinating all those moving parts required to synchronize a retirement plan with the investment model.
ModelxChange is an outgrowth of its predecessor ETFxChange that also has reduced its 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 in October of 2011.
About Mid Atlantic Trust Company
MATC is part of the Mid Atlantic Capital Group of companies that collectively serves over 150 intermediary bank trust departments, insurance companies and TPA firms. MATC provides first-rate trust, custody, trading, paying agent, and directed trustee services. The Mid Atlantic group of companies services over 40,000 plan, trust, and investment accounts with approximately $35 billion in assets. For our TPA, insurance and trust company partners, Mid Atlantic Capital Corporation, member FINRA/SIPC, clears and settles over 1,000,000 fund transactions per month through the National Securities Clearing Corporation (NSCC) using Fund/SERV®.
Securities offered through Mid Atlantic Capital Corporation, member FINRA/SIPC. Advisory services offered through Mid Atlantic Financial Management, Inc., a registered investment adviser. Trust services offered through Mid Atlantic Trust Company, a non depository trust company.
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