WisdomTree Launches EFT Based 401k Platform
NEW YORK, NY, October 8, 2007 -- WisdomTree Retirement Services Inc., a subsidiary of WisdomTree Investments, Inc. (Pink Sheets: WSDT) announced today the launch of a next-generation 401k solution designed to deliver a premium platform in terms of flexibility, transparency, low-costs and meaningful asset allocation to investors. The platform puts index-based investing and WisdomTree’s fundamental ETFs at the heart of the investment strategy and offers the added flexibility to include no-load actively managed mutual funds for additional diversification. The all-inclusive open architecture platform features third-party ERISA fiduciary and investment advisory services and is designed to be used by Plan Sponsors, Advisors, Brokers and third-party administrators (TPAs).
Arthur Levitt, Senior Advisor to WisdomTree Investments and former Chairman of the Securities and Exchange Commission commented, "The inclusion of ETFs in 401k plans - the staple of the vast majority of American retirement portfolios – is a logical next step for these products. Along with other advocates of investor protection in our marketplace, I see ETFs revolutionizing the way 401k plans are assembled and operated in terms of transparency, low fees and broader selection of available investments."
CEO Jonathan Steinberg commented, "We are excited to introduce this new 401k platform at a time when the 401k market is poised for a transformation. With emphasis being placed on fees and transparency, we believe the timing is perfect. Additionally, we believe WisdomTree is ideally suited for retirement plans as a hallmark of our fundamentally weighted strategies is the focus on capital preservation and reduced volatility."
The comprehensive service platform is entirely fee-transparent, highly flexible and low in cost, offering an all-inclusive 401k ETF program for as low as 65 to 70 bps.1 Within the WisdomTree 401k platform we have eliminated the trading fees and commissions typically associated with retail ETF purchases.
To deliver the offering WisdomTree has partnered with CLS Investment Firm LLC (CLS) for asset allocation services; Professional Capital Service (PCS) will handle participant recordkeeping and ICTC (Ameritrade) for custody and trading services.
WisdomTree offers two options:
The "Model Plan" is a wrap-fee ETF 401k turnkey solution that offers six professionally built ETF portfolios attuned to investors’ risk tolerance or target retirement date. The models feature ETFs from WisdomTree as well as Vanguard and iShares. Additionally, advisors can supplement the ETF models with a menu of no-load, non-12b1 mutual funds.2
The "Custom Plan" features all of the investment options available in the Model Plan and allows advisors who can assume more fiduciary responsibility for their clients to create customized portfolios.
Al Shemtob, Director of Retirement Services commented, "We anticipate a shift in the way the retirement plan community thinks about investment strategies and related best practices. We believe that the transparent, low cost, investor-friendly nature of ETFs will prove attractive to advisors and plan administrators as the Pension Protection Act sheds light on the hidden fees present in many mutual fund offerings and places new emphasis on fee disclosures, lower expenses and ultimate fiduciary responsibility."
About WisdomTree Investments
WisdomTree Investments, Inc. has developed the first family of fundamentally weighted indexes. The WisdomTree Indexes cover all major market capitalizations, both domestically and internationally. In contrast to capitalization-weighted indexes, the WisdomTree Indexes anchor the initial weights of individual stocks to a measure of fundamental value. The company believes its approach provides investors with a viable alternative to market cap-weighted indexes.
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