Wachovia will begin selling a new, proprietary Wachovia Securities FundSource 401(k) through its more than 15,000 Wachovia Securities Financial Advisors.
The Wachovia Securities FundSource 401(k) product will help plan sponsors provide their employees the benefit of Wachovia Securities’ money management guidance and the ability to create an investment portfolio comprising a range of investment options, including individual funds offered within FundSource and risk-based “FundSource Optimal Blend Portfolios.”
The FundSource optimal blend portfolios used in the 401(k) plans are the product of investment advisory services from the country’s second largest, full-service brokerage firm based on registered representatives as of 1 January 2008. Recordkeeping and administration support services for the plans will be provided by Wachovia Retirement Services, which currently administers some 6,500 retirement plans for more than 2.3 million participants and pensioners.
“I am pleased that our financial advisors will have this exciting product to present to companies that want to help their employees realize a financially secure retirement,” says Brand Meyer, president, Wachovia Securities Financial Services Group.
As part of Wachovia Securities investment advisory services, Wachovia Securities screens funds for the FundSource program and monitors the performance of those funds. Wachovia Securities acts as investment manager and fiduciary for the assets in the FundSource Optimal Blend Portfolios. Currently there are $29 billion invested in FundSource funds.
“The Wachovia Securities FundSource 401(k) is a terrific new product, and we are very proud to roll this out to current and future clients. Companies that choose this 401(k) will benefit from the support and market knowledge of two leading organisations – Wachovia Retirement Services and Wachovia Securities. Ultimately, we want participants to maximize their potential retirement savings and we believe this plan will help people get there,” adds Joe Ready, director, Wachovia Retirement Services.