Frequently Asked Questions

 

 

Q: Are there any additional restrictions for adding the fund to a retirement plan?

 

Because of the regulations governing CIF's, they are only available to qualified retirement plans. If you have a non-qualified plan such as a 403(b) or 457(b) retirement plan, you would not be able to use this as an investment selection in your plan.

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Q: How do I add the MIZAN fund as an investment option to my retirement plan?

Adding the MIZĀN Fund to Your Retirement Plan

 

  • Determine that your retirement plan is qualified under Internal Revenue Code 401(a). This can be found in your plan document.
  • Confirm that your plan’s TPA/recordkeeper trades the assets of your plan through DTCC/NSCC and has access to the HB&T Collective Investment Funds.
  • If you find that your TPA/recordkeeper does not have access to the HB&T Collective Investment Funds (NSCC member number 4866), have them contact Kathy Harvey at (713)744-3839 or by email to kharvey@bpas.com to make them available.
  • Obtain and complete a Participation Agreement; forward it to your TPA/recordkeeper and request that the MIZĀN All Equity Moderate Allocation Fund be added to your plan’s investment options. Make sure that you choose the share class you desire in the Agreement.
  • Coordinate with your TPA/recordkeeper about the date the Fund will be available to you.

 

Adding the MIZĀN Fund to Your Trading Platform

 

  • Determine that your retirement plan is qualified under Internal Revenue Code 401(a). This can be found in your plan document.
  • Confirm that your plan’s TPA/recordkeeper trades the assets of your plan through DTCC/NSCC and has access to the HB&T Collective Investment Funds.
  • If you find that your TPA/recordkeeper does not have access to the HB&T Collective Investment Funds (NSCC member number 4866), have them contact Kathy Harvey at (713)744-3839 or by email to kharvey@bpas.com to make them available.
  • Obtain and complete a Participation Agreement; forward it to your TPA/recordkeeper and request that the MIZĀN All Equity Moderate Allocation Fund be added to your plan’s investment options. Make sure that you choose the share class you desire in the Agreement.
  • Coordinate with your TPA/recordkeeper about the date the Fund will be available to you.
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Q: On What Platforms is the MIZĀN Fund Available?

The MIZĀN Fund is available on the following platforms and trading links:

 

  • STN (Sungard Transaction Network)
  • Matrix
  • Wilmington Trust Company
  • Wachovia Bank / Wystar
  • Relius Trust Company
  • BPAS (Benefit Plans Administrators)
  • Merrill Lynch
  • Schwab
  • Fidelity

 

Please note: the MIZĀN Fund is available to most retirement service providers, since it is available on the National Securities Clearing Corporation (NSCC) platform, which is used by virtually every firm. If you would like us to work with your record keeper to add the fund to your plan, please call Jennifer Buchanan at 866-401-5272 ext 6925 or send an email the request to MIZAN@bpas.com. We will gladly facilitate this process.

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Q: What is a Collective Investment Fund, and what advantages do they offer?

 

A Collective Investment Fund, or CIF, is a fund that is operated by a trust company or a bank that handles a pooled group of trust accounts. Collective Investment Funds combine the assets of various individuals and organizations to create a larger, well-diversified portfolio.

 

The idea of a collective fund is to lower costs through economies of scale by combining qualified retirement plan assets into a single pool. These funds are grouped into a master trust account under the control of the bank, which acts as trustee, guardian, executor and administrator.

 

Hand Benefits & Trust (HB&T) is an innovator in the design, trading and registration of Collective Investment Funds. HB&T also unitizes the portfolio and prices it daily, so it can be traded by a wide array of retirement service providers through the NSCC trading platform.

 

Collective funds offer a variety of advantages to plan participants, plan sponsors and retirement service providers. These include:

 

  • Low expense ratios and transparent pricing. CIFs are offered with institutional pricing, which is generally much lower than the pricing for retail mutual funds – providing a cost savings to plan participants.
  • Flexibility in fund holdings. CIF accounts are not subject to the stringent asset allocation guidelines required by the Investment Company Act of 1940. This gives CIF managers greater flexibility in the level of cash and equities they can hold compared with mutual funds – providing greater liquidity and allowing CIF managers to react quickly to market conditions.
  • Transparency in fund holdings. A full listing of holdings for a CIF is usually readily available, while mutual funds usually only disclose top holdings on a quarterly basis.
  • Easy to track. CIF accounts are the fund of choice for most recordkeepers. Since CIF accounts never declare splits or dividends, they are easy to administer from an accounting perspective.
  • Coordinate with your TPA/recordkeeper about the date the Fund will be available to you.
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Q: What is the fee structure utilized within the MIZĀN Fund?

There are three share classes of the MIZĀN Fund: R1, R2 and R3. Depending on the plan size, service provider configuration and other factors, one of these share classes may be most appropriate to each situation.

 

  • R1 Shares: 65 bps total expense ratio, no service fees
  • R2 Shares: 100 bps total expense ratio, 35 bps service fees
  • R3 Shares: 130 bps total expense ratio, 65 bps service fees
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