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AIG SUNAMERICA IS
a household name well respected in corporate America and
among individual investors. The company decided in 2000
that it needed to be part of the 401(k) market, which
has almost $3 trillion in assets and tens of millions of
baby boomers looking to invest their rollovers when they
retire. Following a successful agreement with the U.S.
Chamber of Commerce and the CHAMBERplan product, AIG
SunAmerica has now re-branded their 401(k) product as
Polaris401(k) and is expanding in the small 401(k)
corporate market.
AIG SunAmerica has many natural advantages beyond its brand and
reach in the annuity arena. The company leverages 38
variable annuity wholesalers and four dedicated
retirement specialists, along with over 100 reps from
ADP who also perform record keeping and administrative
services to form a solid distribution and support
network. These wholesalers have a good understanding of
the needs of the independent advisor channel.
AIG SunAmerica’s broker dealer system, plus relationships with
most of the major distributors, including a strong focus
in the Edward Jones system, provides a solid launching
pad for AIG SunAmerica to move into other networks.
AIG SunAmerica recently partnered with PAi, a leading independent
record keeper with growing market share and top ratings
from 401kExchange, to offer a more cost-effective
product with more investment flexibility.
Polaris401(k) is designed for plans with less than $3
million. Average equity costs are in the 160 BP range
with a fixed 85 BP wrap to subsidize the cost of
administration. Advisors enjoy a selection of unique
commission options.
Though there are only 1,400 plans currently under
management, representing about $1 billion, AIG
SunAmerica is making a commitment to grow in the 401(k)
market and has promised to expand resources as the book
of business grows.
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