Retirement plan advisors will now have access to a one-of-a-kind multi-account fund that provides diversification in stable value with no minimum investment as a result of the launch of a new collective investment trust (CIT), the Matrix Trust Multi-Manager Stable Value Fund.
Matrix Trust Company, a subsidiary of New York-based Broadridge Financial Solutions, Inc., announced the launch of the new CIT on June 8, in conjunction with Mesirow Financial as sub-advisor.
The Matrix Trust Multi-Manager Stable Value Fund builds upon Matrix’s existing CIT platform, providing Matrix custody clients and consultants, plan sponsors and recordkeepers access to the Fund for plans of all sizes. Matrix Trust is the trustee of the Fund and is assisted by Mesirow Financial as sub-advisor on the allocation to and performance monitoring of underlying stable value investments.
The Fund will initially invest in equal weights with four stable value products offered by Lincoln Financial Group, Great West Life and Annuity, New York Life and Transamerica for the stable value strategy.
“In conjunction with our relationship with Mesirow, we are able to provide access to multiple different underlying stable value investments that are low-cost and easily accessible by retirement plan participants.”
Cindy Dash
“The Matrix Trust Multi-Manager Stable Value Fund is in direct response to a growing need from the retirement community for an investment vehicle that does not rely on the credit rating of one underlying wrap or product provider. This will enable greater diversification and flexibility within retirement plans,” said Cindy Dash, head of Broadridge’s Matrix Financial Solutions. “In conjunction with our relationship with Mesirow, we are able to provide access to multiple different underlying stable value investments that are low-cost and easily accessible by retirement plan participants.”
The launch of the new Fund represents a continued effort by Matrix to build its discretionary trustee capabilities in the CIT marketplace working with sub-advisors to launch funds under the trusteeship of Matrix Trust Company. Matrix entered the collective investment trust business by acquiring TD Ameritrade Trust Company’s CIT business in 2019 as part of its strategy to add additional capabilities for Matrix customers and launch more funds with potential sub-advisors in the future.
“Our relationship with Matrix is offering a first-of-its kind solution to retirement plan advisors and plan sponsors who seek increasingly differentiated and low-cost vehicles for their plans. The Fund will have four share classes with servicing fees ranging from zero, 10, 25 and 50 basis points,” said David Cohen, Senior Vice President at Mesirow Financial. “The Matrix Trust Multi-Manager Stable Value Fund is helping to further democratize the retirement industry with no minimum investment, removing a barrier to entry while providing diversification.”
The Matrix Trust Multi-Manager Stable Value Fund is a newly created pooled fund investment option that has no history or performance record. The Fund is a CIT available as an investment option to certain tax-qualified, employer-sponsored retirement plans and is not available to the general public. Investments in the Fund are not registered with the Securities and Exchange Commission, are not bank deposits insured by the Federal Deposit Insurance Corporation nor any other agency of the U.S. Government, are not guaranteed by Matrix Trust Company, and are subject to investment risks, including loss of principal.
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