New 401(k) platform features iShares

A new 401(k) retirement plan solution featuring iShares exchange traded funds from Barclays Global Investors of San Francisco is now available to plan sponsors and independent advisers. BenefitStreet Inc., a San Ramon, Calif.-based 401(k) record keeper, and Barclays announced the news today. The BenefitStreet ETF system is a cost efficient way of delivering ETFs directly to investors, rather than requiring the use of unitization or collective trusts, according to a joint statement from the companies. Through its platform, BenefitStreet places trades at the fund level, to minimize commission costs across the entire platform with full pricing transparency down to the participant level. “This is a breakthrough in the delivery of iShares funds to the sizable 401(k) U.S. market at a time when transparency and low total cost are critically important to plan sponsors and advisers,” Michael Latham, managing director and head of iShares in North America, said in the statement. “BenefitStreet in partnership with iShares funds brings a new option for plan flexibility, cost efficiency and technical expertise that make managing nontaxable accounts even more attractive for advisers.” The availability of iShares on this platform allows advisers who have been offering ETFs to their clients with taxable accounts to now offer these investment options to their 401(k) clients, according to the joint statement. Through this proprietary system, advisers will be able to construct asset allocation portfolios using iShares ETFs on behalf of plan participants.