As part of its commitment to retirement planning advisors, ADP has introduced IPS Zero, an investment platform designed to appeal to advisors who employ a fee-for-service structure with their retirement plan clients and plan sponsors who want simplified fees.
With IPS Zero, advisors and their clients can benefit from greater transparency and lower investment expenses when administering their plans.
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The investment options offered under the IPS Zero platform pay no 12b-1, shareholder servicing fees or revenue sharing compensation to ADP, Inc. (or its affiliates), which grants plan sponsors and participants the benefit of paying significantly lower investment fees.
In addition, since ADP, Inc. is not an investment manager, it does not offer or require the use of any proprietary investment vehicles, which ensures there are no conflicts of interest or impediments to creating an investment menu best suited to each client’s needs.
Chris Augelli, vice president of product marketing and business development at ADP Retirement Services, said: "ADP Retirement Services is committed to helping retirement planning advisors and plan sponsors generate the best possible savings outcomes for their participants. That’s why we’ve created IPS Zero. IPS Zero is designed for plan sponsors who believe simplified fees and complete transparency are in the best interests of their plan and their employees."
Matt D. Fitch, a retirement plan consultant, Feltl and Company, said: "We’ve been waiting for a product like IPS Zero because now all fee details are wide open for our clients to see and understand. To have a retirement investment platform linked with payroll is a huge advantage because our clients understand exactly what they are buying from us and they know exactly what they are paying for."
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By GlobalDataBryan Strong, Fitch’s partner at Feltl and Company, said: "This kind of transparency helps build trust, and being trusted helps us retain clients."
In addition to simplified fees, the IPS Zero platform offers investment screening and ongoing monitoring of the platform’s investment options by ADP’s team of investment professionals; a broad selection of investment options from over 30 leading asset managers; and access to support tools to help advisors and plan sponsors mitigate fiduciary liability.
Investment options are screened and monitored based on the ADP IPS Zero platform Investment Policy Statement (IPS). Only funds that meet the qualitative and quantitative requirements of the IPS are considered for the platform.
Augelli added: "Our goal is to make retirement plan administration and participation easy and accessible, and simplified fees and transparency play an important role in that process."
