AST Trust Launch of ETF Collective Funds for Retirement Plans
PHOENIX, AZ, November 8, 2005 -- AST Trust Company ("AST"), a division of American Stock Transfer & Trust Company, today announced the launch of 10 ETF collective funds for the retirement community. The ETF collective funds are an exciting enhancement to the services currently offered by AST to its institutional clients. Collective funds, which operate similarly to mutual funds, are exclusively available to qualified retirement plans. AST's ETF funds open the door for retirement plans and plan participants to take advantage of one of the most popular investment products of the 21st century.
AST has revolutionized the use of ETFs for retirement plans by cost-effectively delivering them through collective funds so that they can be used by 401k plans like any other investment option. AST's launch consists of 10 ETF collective funds, including large-cap, mid-cap, small-cap, emerging markets, international, equity, short-term and investment-grade bond funds choices. The collective funds are available for trading through FundSERV, the mutual fund clearing platform for the National Securities Clearing Corporation ("NSCC"), thereby making the services widely accessible to plan sponsors.
"The retirement community has been thirsting for an attractive ETF solution, and AST is the first company to deliver it in a cost-effective and common structure for 401ks and other qualified plans," said Steve Ferber, Executive Vice President of Collective Fund Operations at AST. "Until now, the features of ETFs have not been consistent with the trading needs of daily valued retirement plans. By leveraging our collective fund services, we've married the features of an ETF with the needs of the retirement market."
The funds will initially be available through several of the leading retirement platforms and bundled plan providers, a number AST expects to increase.
AST is also partnering with many of the nation's most respected investment managers to create additional collective funds to address the needs of the retirement market.
"We at AST are dedicated to providing a full spectrum of fiduciary services to our institutional clients; we believe that many retirement plan sponsors, in search of lower fees, and investment managers, in seeking to grow their business, will look to leverage collective funds," said Greg Tschider, President of AST Trust Company.
About AST Trust Company
AST Trust Company (http://www.asttrustco.com), a division of American Stock Transfer & Trust Company, is an independent trust company that provides directed trustee, trust administration and back-office services to financial advisors who serve individuals, families, companies, foundations, organizations and financial institutions. AST is one of the largest independent trust companies in the U.S.
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