Zacks Offers Private Investment Management Services For 401k Plans
CHICAGO, IL, August 23, 2006 -- Now that the long awaited Pension Protection Act is law, it is expected to lead the way in pension reform in several ways. It will not only make it more difficult for companies to avoid funding their pension plans, but it will also provide incentives to companies that create an automatic enrollment process for their defined contribution plans. Published studies show that, up to now, of all workers eligible to participate in 401k plans, many do not take the time to enroll.
In response to this new law, one of the premier investment management boutiques, Zacks Investment Management, has created and launched Zacks Retirement Plan Solutions. This unique and new division brings the investment management expertise of Zacks together with the cutting-edge trading technology of FOLIOfn, Inc. and the best-in-class administrative capabilities of Benefit Consultants Group, to provide an innovative 401k plan benefiting both plan participants and plan sponsors. A key highlight that the new Zacks plan will offer participants, is the customized structure of a Separately Managed Account (SMA). "Incorporating this feature into the Zacks Retirement Plan Solution will raise the standard of 401k plans," says Andrew Zimmer, Managing Director of Zacks Investment Management and creator of the plan. "The SMA structure of Zacks' 401k offering is extremely unique in the defined contributions arena," says Zimmer. "It represents a first for the average American worker, who will now have access to genuine, professional, private money management; something that traditionally has been reserved for wealthy individuals and highly compensated executives."
Other components of the plan include...
- A plan design for participants which will include features such as automatic enrollment, escalating savings and automatic investing.
- Complete transparency with the ability to view all holdings and transactions. This includes the ability to hold individual securities and fractional shares of securities in the plan.
- No 12b-1 fees, full investment disclosure, greater control.
- Effective Risk Management.
- Incorporation of Zacks LifeCycle Strategies, professionally managed stock and bond portfolios that adjust their weightings to each asset class over time as the employee nears retirement.
Zacks believes these will be important elements which will help set the standard for modern retirement plan design going forward. According to Zimmer, the structure of Zacks' plan is also particularly favorable for small and midsize professional private practices, as it represents a new philosophy and a novel approach to high performance investing for highly compensated executives.
"The new law and our new plan represent a paradigm shift in the defined contribution market. Workers will no longer have to be on their own in making investment choices in their company sponsored retirement plans," says Zimmer. "The retirement plan arena has been turned on its head and the biggest beneficiary is the American worker."
About Zacks
Zacks Investment Management is an investment firm specializing in portfolio customization for individual investors and institutions. You can learn more about Zacks Retirement Plan Solutions, by visiting www.zackswmg.com/401k/.
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