Jack White & Co., San Diego, is forming alliances with Big Six accounting firms and large third-party administrators to broaden its reach in the 401(k) business.
The firm has offered a turnkey 401(k) program for five or six years but because of high administrative costs, "pricing has not been very competitive," said Don Cody, marketing coordinator-institutional services.
The product has assets of less than $5 million and Mr. Cody said, "we're almost at the point of not recommending it anymore."
A number of alliances will be announced by Jan. 1, led by an alliance with SEI Corp. and KPMG Peat Marwick.
The firms will use Jack White's no-transaction-fee mutual fund program in conjunction with their own administration. Pricing will be at the discretion of SEI and Peat Marwick.
Mr. Cody said while he hopes the pricing will be less than that of archrival Charles Schwab & Co., "it's not our intention to go head to head with Schwab. Theirs is a turnkey product. They have a trust company. . . Our (funds) will be offered through advisers who do business with us and SEI-Peat Marwick clients."
Using Jack White funds, "if a provider chooses to package a product, it's their option."
- Marlene Givant Star