Mid Atlantic Trust Company Delivers Managed Models to the 401(k) Marketplace
BlackRock has made its LifePath target date and risk allocation ETF models available to those advisors with plans and assets custodied at Mid Atlantic Trust Company.
For more than a decade, Mid Atlantic Trust Company’s ModelxChange® has allowed 401(k) professionals to create, execute and manage mutual fund and ETF investment models seamlessly into a retirement plan — all through a single, web-based interface. Mid Atlantic Trust Company (MATC) is now expanding this platform, launching ModelxChange Gallery to provide access to portfolio construction and management expertise from global asset managers, with BlackRock, Franklin Templeton, Federated Hermes and Janus Henderson as part of the initial release.
Franklin Templeton, the first firm to launch, has released a suite of a dozen outcome model portfolios that provide targeted diversification among asset classes, regions and sectors, and utilize a wide range of active, passive and smart beta investments. “Outcome Model Portfolios can help simplify allocation decisions and provide a solution that is more personalized than a target date fund in a retirement plan,” said Yaqub Ahmed, Head of Franklin Templeton’s Investment-Only Division, U.S. Retirement and Insurance/Subadvisory.
BlackRock has made its LifePath® target date and risk allocation ETF models available to those advisors with plans and assets custodied at Mid Atlantic Trust Company. As the first target date fund, LifePath has seen investors through more market ups and downs than any other target date fund. With the launch of LifePath target date models on ModelxChange Gallery, BlackRock is helping to provide more investors with low-cost, professionally managed portfolios of diversified investments that adjust over time. For plan sponsors and advisors, BlackRock is bringing a time-tested default investment alternative to the models marketplace.
Janus Henderson and Federated Hermes will also be launching models utilizing ModelxChange Gallery. Janus Henderson will be launching six asset allocation models, including 3 ETF-based models as part of its Global Adaptive Capital strategy. The other 3 models from Janus Henderson, part of its Global Allocation strategy, are mutual-fund models.
Federated Hermes plans to offer 11 multi-manager target-date portfolios on Mid Atlantic’s ModelxChange Gallery platform beginning on Oct. 1, 2020. Designed specifically for defined contribution plans, Federated Hermes’ glide-path models will take an open-architecture approach to investment selection that mixes active and passive mutual funds and ETFs.
Support of ETFs in a 401(k) Model Portfolios and the Fiduciary Role
For retirement plan advisors and recordkeepers, ModelxChange supports ETFs, with a single, end of day execution price, thus efficiently eliminating the primary hurdles for incorporating ETFs into a retirement plan alongside mutual funds. Simultaneously, advisors managing those retirement plans can also incorporate those same models into the high net worth accounts with assets in custody with Mid Atlantic Trust Company.
In terms of the fiduciary role, Tim Friday, Group CEO of Mid Atlantic Capital Group explained, “For advisors who do not wish to act in a 3(38) fiduciary capacity, ModelxChange Gallery is perfect! The asset manager simply provides Mid Atlantic Financial Management (MAFM) — a registered investment advisor and affiliate of MATC — the intellectual capital, allocation, and rebalancing instructions.” Under this scenario, MAFM takes on the role of 3(38) manager, who in turn will review, execute, and monitor on the advisor’s behalf. Mr. Friday continued, “For those advisors that want expert management from some of the world’s largest asset managers, ModelxChange Gallery just might be the solution to help achieve the client’s retirement goals.”
About Mid Atlantic Trust Company
Mid Atlantic Trust Company (MATC) and its affiliated companies serve more than 90,000 retirement plans and trust accounts, representing approximately 14% of all U.S. 401(k) plans. MATC offers open-architecture access to mutual funds, ETFs, collective funds, managed models, unitized funds and brokerage accounts along with a suite of tools to help plan advisors attract and retain business through a network of over 90 recordkeeper partners. For more information about MATC, or any of the Mid Atlantic Capital Group family of companies, please visit www.macg.com or contact us at 800-693-7800.
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