Human Interest Introduces Enhanced 3(38) Investment Lineup to Lower Small-Biz Fees
San Francisco-based Human Interest Advisors today unveiled a new 3(38) investment fiduciary lineup designed to significantly lower costs for over 40,000 small and medium businesses.
“The addition of low-cost CITs across tens of thousands of our 401(k) plans is a major milestone…”
Ronnie Cox, Human Interest Advisors
The new lineup, which includes Great Gray Collective Investment Trusts (CITs) with underlying investment in BlackRock index solutions, among other investment strategies, offers new investment options that Human Interest says are up to 63% less expensive than the previous options,reducing the average investment expense ratio of the model portfolios managed by HIA from 0.06-0.07% to between 0.04-0.05%.
“We are creating a future where every American has access to the most efficient and effective tools for retirement savings. The addition of low-cost CITs across tens of thousands of our 401(k) plans is a major milestone in turning that vision into a reality,” said Ronnie Cox, Investment Director for Human Interest Advisors. “This is more than a product launch—it’s about changing the economic equation for retirement savers in the small and medium plan market.”
The change is projected to save nearly 675,000 participants of the plans who use HIA’s model portfolios an estimated $1.6 to $2.4 million collectively in fees in the next year alone. It is the latest move in HIA’s self-stated ongoing mission to maximize value for 401(k) clients. By providing broader access to investment strategies at prices historically only available to large plans, HIA said it continues to promote fee transparency and lower costs for businesses of all sizes. HIA is one of the first investment advisors to enable access to CITs through a centralized platform of tens of thousands of plans through a single 3(38) lineup.
HIA said in a press release that today’s development extends its “track record of innovation and disruption by minimizing fees, enabling businesses to offer retirement plans with low-cost investment options that help simplify plan setup and ongoing management.”
The company claims several industry firsts: eliminating transaction fees, offering a cash-back incentive program for plan participants, and the first of its kind money-back customer experience guarantee.
SEE ALSO:
• Human Interest Unveils Automated 401(k) Audit Solution
• Human Interest Doubles Down on Unique Customer Service Guarantee
Veteran financial services industry journalist Brian Anderson joined 401(k) Specialist as Managing Editor in January 2019. He has led editorial content for a variety of well-known properties including Insurance Forums, Life Insurance Selling, National Underwriter Life & Health, and Senior Market Advisor. He has always maintained a focus on providing readers with timely, useful information intended to help them build their business.
