Focus: Retirement Plan Services RecordkeeperDirect®-Multifund Advisor Summary RecordkeeperDirect-Multifund 1 is a retirement plan solution designed to give you more of what you need to meet the 401(k) challenge. Industry-Leading Support Rely on service ranked highest by advisors in a third-party industry survey 2 • Help improve participant outcomes: Enrollment webinars and education services; ongoing support, tools and resources through the life of the plan • Support fiduciary needs: Optional ERISA 3(21) and 3(38) investment services 3 from an independent fiduciary Open Investment Architecture Access to the American Funds and investments from other well-known managers to: • Create diversified menus to meet the needs of a wide variety of participants • Gain access to a target date series that can reduce plan sponsor liability and improve participant results • Benefit from open investment architecture with no proprietary fund requirement if selecting standard conversion into the American Funds Target Date Retirement Series® Competitive Pricing Tailor pricing to your clients’ needs with a range of share class options • Help clients understand exactly what fees pay for with our straightforward approach to pricing and commitment to low expense ratios and other fees • Win and keep more business with flat-rate recordkeeping fees Versatile Compensation Select the compensation option that’s right for you and your plan • American Funds has created a variety of compensation schedules for diverse advisor service models • Unit class options are available for fee-based practices, offering flexible advisor compensation payment options We Believe Better 401(k) Plans Are Built on Solutions Focused on Plan Sponsor Priorities. 1 RecordkeeperDirect-Multifund investments are offered through a group fixed and variable deferred annuity (“group annuity”) issued by Great-West Life & Annuity Insurance Company, Corporate Headquarters: Greenwood Village, CO; or, in New York, by Great-West Life & Annuity Insurance Company of New York, Home Office: White Plains, NY. RecordkeeperDirect-Multifund is not available to 403(b), SEP or SIMPLE IRA plans. To sell RecordkeeperDirect-Multifund, you must be state licensed to sell insurance and appointed with the contract issuer. Georgia and Pennsylvania require pre-appointment before presenting RecordkeeperDirect-Multifund to a prospect. For more appointment information, call (800) 421-9900. 2 Retirement Plan Advisor Trends TM , 2014. 3 Check with your home office for availability. For financial professionals, third-party administrators and institutional consultants only. Investments are not FDIC-insured, nor are they deposits of or guaranteed by a bank or any other entity, so they may lose value. However, assets in the Fixed Account (available only in RecordkeeperDirect-Multifund) are guaranteed by Great-West Life & Annuity Insurance Company, Corporate Headquarters: Greenwood Village, CO; or, in New York, by Great-West Life & Annuity Insurance Company of New York, Home Office: White Plains, NY, and payments on investments are subject to the insurer’s claims-paying ability.
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Focus: Retirement Plan Services
RecordkeeperDirect®-Multifund Advisor Summary
RecordkeeperDirect-Multifund1 is a retirement plan solution designed to give you more of what you need to meet the 401(k) challenge.
Industry-Leading Support
Rely on service ranked highest by advisors in a third-party industry survey2
• Help improve participant outcomes: Enrollment webinars and education services; ongoing support, tools and resources through the life of the plan
• Support fiduciary needs: Optional ERISA 3(21) and 3(38) investment services3 from an independent fiduciary
Open Investment Architecture
Access to the American Funds and investments from other well-known managers to:
• Create diversified menus to meet the needs of a wide variety of participants
• Gain access to a target date series that can reduce plan sponsor liability and improve participant results
• Benefit from open investment architecture with no proprietary fund requirement if selecting standard conversion into the American Funds Target Date Retirement Series®
Competitive Pricing
Tailor pricing to your clients’ needs with a range of share class options
• Help clients understand exactly what fees pay for with our straightforward approach to pricing and commitment to low expense ratios and other fees
• Win and keep more business with flat-rate recordkeeping fees
Versatile Compensation
Select the compensation option that’s right for you and your plan
• American Funds has created a variety of compensation schedules for diverse advisor service models
• Unit class options are available for fee-based practices, offering flexible advisor compensation payment options
We Believe Better 401(k) Plans Are Built on Solutions Focused on Plan Sponsor Priorities.
1 RecordkeeperDirect-Multifund investments areofferedthroughagroupfixedandvariabledeferred annuity (“group annuity”) issued by Great-West Life & Annuity Insurance Company, Corporate Headquarters: Greenwood Village, CO; or, in New York, by Great-West Life & Annuity Insurance Company ofNewYork,HomeOffice:WhitePlains,NY. RecordkeeperDirect-Multifund is not available to 403(b), SEP or SIMPLE IRA plans. To sell RecordkeeperDirect-Multifund, you must be state licensed to sell insurance and appointed with the contract issuer. Georgia and Pennsylvania require pre-appointment before presenting RecordkeeperDirect-Multifund to a prospect. For more appointment information, call (800) 421-9900.
2 Retirement Plan Advisor TrendsTM, 2014.3 Checkwithyourhomeofficeforavailability.
For financial professionals, third-party administrators and institutional consultants only.
Investments are not FDIC-insured, nor are they deposits of or guaranteed by a bank or any other entity, so they may lose value.
However, assets in the Fixed Account (available only in RecordkeeperDirect-Multifund) are guaranteed by Great-West Life & Annuity Insurance Company, Corporate Headquarters: Greenwood Village, CO; or, in New York, by Great-West Life & Annuity Insurance Company of New York, Home Office: White Plains, NY, and payments on investments are subject to the insurer’s claims-paying ability.
Get Personalized Sales Support to Build Your Retirement Plan Business
• Win plans and grow your business with the help of an experienced retirement plan sales force
• Access tools and information easily to find the right solutions and convert prospects into sold plans
• Show plan sponsors how you can save them money with an illustration from the Retirement Plan Cost Comparison Tool
Rely on Superior Ongoing Service to Help Retain Satisfied Clients
• Provide plan sponsors and participants with the worry-free, no-surprises service experience you have come to expect from American Funds
• Support when you and your clients need it; peace of mind that issues will be resolved if they do arise
• Rely on us for support when conducting ongoing plan investment reviews
Help Improve Participant Outcomes With Enrollment and Education Support
• Comprehensive educational program and materials — with bilingual support
• Enrollment assistance
Fiduciary Services: Independent, Flexible and Affordable
Even if you choose not to serve as a plan fiduciary, you can still help plan sponsors with their duty to select and monitor a plan’s investment menu. American Funds makes investment-related fiduciary services available through an independent third party, Wilshire Associates Incorporated (Wilshire®).
Work Smarter, Not Harder, With the Right Service and Support
Industry-Leading Support
Wilshire® is a registered service mark of Wilshire Associates Incorporated, Santa Monica, California. All other trade names, trademarks and/or service marks are the property of their respectiveholders.WilshireisnotanaffiliateofanymembercompanyofAmericanFunds.Wilshireis solely responsible for the program material and its investment recommendations. The complete terms and limitations of Wilshire’s 3(21) Investment Advisor and 3(38) Investment Manager programs may be found in the applicable agreement between the plan sponsor and Wilshire.
RecordkeeperDirect-Multifund is an open architecture1 solution (with a standard target date conversion) that offers investments from a wide variety of funds from other respected investment managers, our American Funds Target Date Retirement Series, and a Fixed Account2 with a guaranteed interest rate.
Target Date Funds: An Important Part of Retirement Plan Menus
Choosing the American Funds Target Date Retirement Series for your plan delivers an additional set of benefits. The Series helps eliminate guesswork by offering an age-appropriate option for participants and provides sponsors with a qualified default investment alternative (QDIA) with fiduciary protection.
Although target date funds are managed for investors on a projected retirement date time frame, the funds’ allocation strategy does not guarantee that investors’ retirement goals will be met. American Funds investment professionals actively manage each target date fund’s portfolio, moving it from a more growth-oriented strategy to a more income-oriented focus as the fund gets closer to its target date. They continue to manage each fund for 30 years after it reaches its target date. The target date is the year in which an investor is assumed to retire and begin taking withdrawals.
Give Clients Investment Flexibility and Choice
Open Investment Architecture
1 Assumes the sponsor selects standard conversion to the American Funds Target Date Retirement Series. If not, American Funds would serve as a core manager and additional solution requirements would apply.
2 The Fixed Account is offered through a group annuity issued by Great-West Life & Annuity Insurance Company; or, in New York, by Great-West Life & Annuity Insurance Company of New York. The Fixed Account provides a guarantee of principal and a guaranteed quarterly interest rate. The entire general account assets of the insurer back these guarantees.
“Few other target-date series have as many highly regarded underlying holdings.”
— Morningstar Target-Date Fund Series Report, December 31, 2014
Cost Comparison Tool Example
This hypothetical illustration provides a high-level view of plan expenses and credits, and explains how each fits into the total plan cost.
* Investment options are offered through a group annuity issued by Great-West Life & Annuity Insurance Company, Corporate Headquarters: Greenwood Village, CO; or, in New York, by Great-West Life & Annuity Insurance Company ofNewYork,HomeOffice:WhitePlains, NY.
Estimated First-Year Plan Cost
Current Plan Assets$2,500,000
Estimated Annual Contributions$150,000
Number of Participants30
CURRENT PROVIDER
Current Provider American Funds
Recordkeeper Direct -Multi-Fund* Class 4
Annual Plan Administration Expenses
Recordkeeping Fees $0 $4,000
Administration Fees (TPA) $0 $0
Trustee / Custodial Fees $0 $0
GROSS Plan Administration Expenses $0 $4,000
Plan Credit / Expense Offset ($0) ($6,625)
Net Plan Administration Expenses $0 ($2,625)
Annual Investment Expenses
Average Expense Ratio 1.17% 1.29%
Other Fees 0.45% 0.00%
Adviser Fees 0.00% —
Total Investment Expenses1.62%
$42,9301.29%
$34,185
First-Year Plan Cost 1.62%$42,930
1.19%$31,560
One-Time Plan Fees N/A $0
Straightforward Pricing Structure
Your clients will know exactly how much they’re paying and what they’re paying for through flat fees that are easy to understand. Recordkeeping fees are based on the number of participants, not the number of eligible employees or plan assets, so recordkeeping costs will not increase simply because assets grow.
Plan Credits Offset Plan Expenses
Plan assets generate plan credits, which can be used to offset plan expenses. Over time, net plan costs, as a percent of assets, will decrease as assets grow.
Win and Keep More Business With Competitive Plan Pricing
The plan costs are based on information entered or provided by the financialprofessional. If actual fees, expenses and other figures vary, plan costs may be affected.
Automatic Plan Repricing
To help the plan remain competitively priced, the plan credit is automatically re-calculated every quarter, which may result in a larger plan credit as the number of participants and plan assets grow.
RecordkeeperDirect-Multifund provides eight unit classes and a flexible approach to compensation. Choose a traditional option (See Option 1 in table below), which offers a constant rate of compensation, or Option 2 for a higher upfront payout in the first year, plus, something most providers won’t offer: a raise in the fourth year.
Choose the Compensation Level That’s Right for You and Your Plan
Versatile Compensation
Advisor Compensation
Option 1: Fixed Compensation Rates
Option 2: Variable Compensation Rates*
Unit Class Annual Year 1 Years 2-3 Years 4+
1 0.75% 1.00% 0.40% 0.75%
2 0.65 Not available
3 0.60 1.00 0.20 0.60
4 0.50 0.75 0.25 0.50
5 0.40 0.50 0.20 0.40
6 0.25
Not available7 Paid separately; set by fee-based advisor
and plan sponsor8
* First-year commission is paid on conversion and new contributions. Successive years’ commission ispaidasasset-basedtrail.Acommissionchargebackmayapplyifwithinthefirst24monthstheplan terminates, moves from RecordkeeperDirect-Multifund to another American Funds solution, to another provider, or changes unit classes.
Each retirement plan requires a different level of service. To compensate you for what you do, American Funds offers flexible compensation schedules for diverse advisor service models.
For information, assistance or to order a proposal, visit us online at americanfunds.com/401k, or call us at (800) 421-9900.
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Retirement planning. It’s a critical challenge facing businesses across the
country. Fortunately, they don’t have to do it alone. Advisors like you, working
with American Funds, can help sponsors find the right plan for their company —
and for your practice.
Since 1931, American Funds, part of Capital Group, has helped investors
pursue their long-term financial goals. Bring our consistent approach and
the strengths of The Capital SystemSM to your 401(k) plan sponsors and
their participants.
Let’s Meet the Retirement Challenge — Together.
Versatile Compensation
Competitive Pricing
Open Investment Architecture
Industry-Leading Support What you need to meet the 401(k) challenge
American Funds Retirement Plan Services
“In a survey of advisors, American Funds was among the top of 32 major retirement plan providers for being ‘easiest to do business with’ and ‘best-in-class advisor service and support.’”
— Cogent Research, Retirement Plan Advisor Trends,TM 2014
Investors should carefully consider investment objectives, risks, charges and expenses. This and other important information is contained in the fund prospectuses and summary prospectuses, which can be obtained from a financial professional and should be read carefully before investing. For an investment offered through a group annuity, some of this information may differ and can be obtained from a financial professional.
