401kFiduciaryOptimizer solution that addresses ERISA requirements earns finalist status in annual WealthManagement.com awards competition
NEW YORK, September 22, 2017 (Newswire.com) - RiXtrema, the leading provider of risk management tools and analysis to the financial advisory and broker/dealer community to help advisors ensure that investors get the analysis and advice they need, has been selected as a finalist for WealthManagement.com’s 2017 Industry Awards. The annual competition recognizes outstanding achievement, innovation, and leadership among companies and organizations that support financial advisor success. The 2017 Industry Awards ceremony will take place Oct. 11, 2017, at a gala event in New York City.
RiXtrema is a finalist in the “401(k) Retirement Plans: Technology” category. The nomination and finalist recognition is related to one of the firm’s premier solutions, the 401(k) FiduciaryOptimizer. The tool is the first and only software to use sophisticated quantitative methodologies to improve menu design for retirement plans, enabling advisors to bring science-based savings and improved menu diversification to retirement plan sponsors and their participants.
“We are thrilled to be selected as a finalist and recognized as a leader in helping advisors achieve significant savings for their plan sponsor clients and for plan participants,” said RiXtrema President Daniel Satchkov. “Our tool has helped hundreds of advisors significantly enhance the value they provide to clients.”
We are thrilled to be selected as a finalist and recognized as a leader in helping advisors achieve significant savings for their plan sponsor clients and for plan participants. Our tool has helped hundreds of advisors significantly enhance the value they provide to clients.
To provide further evidence of potential cost savings, RiXtrema’s award-winning research team undertook an enhanced analysis of 52,529 retirement plans from the DOL EFAST database, to estimate the potential aggregate savings to the defined contribution plans by switching to more efficient menus. Considering only high-quality, similar funds as low fee alternatives to the universe of expensive incumbent funds, the research showed that the potential aggregate savings for the industry is at least $17 billion.
RiXtrema recently announced the addition of the new Plan Monitor to enhance the 401kFiduciaryOptimizer. The feature monitors retirement plans every day, and sends the plan advisor a report as soon as potential problems are found, including those relating to availability of better share classes, availability of lower cost identical investments, and performance problems for plan menu funds versus identical lower-cost investments. This is especially important as it helps the advisor address the recent Supreme Court Tibble v. Edison decision which stipulates that plan sponsors “continually monitor trust investments and remove imprudent ones. This continuing duty exists separate and apart from the trustee’s duty to exercise prudence in selecting investments at the outset."
“We are keenly aware of fee waste in the defined contribution space and are committed to providing advisors with a research-based tool to address it and better serve plan sponsors,” added Satchkov.
To learn more about the 401kFiduciaryOptimizer, visit https://rixtrema.net/401k/index or contact RiXtrema at (212) 513-7070.
Founded in 2010, RiXtrema is the first company to make sophisticated quant algorithms work for investment fiduciaries. RiXtrema built a FiduciaryOptimizer suite of products including 401kFiduciaryOptimizer to help plan advisors grow their business, IRAFiduciaryOptimizer for best interest rollover reporting, AnnuityOptimizer for annuity analysis and Target-Date FiduciaryOptimizer, scheduled for release in September 2017. The RiXtrema research team received the 2015 Peter L. Bernstein award, one of the most prestigious awards in finance, for its article Risk Estimation and Hedging: A Reverse Stress Testing Approach, published in The Journal of Derivatives in April 2015. For more information, visit www.rixtrema.com.