Even as fund firms fold into each other, new bodies are taking their places on the playing field. New York City-headquartered
Mutuals.com is the latest to suit up and take the field. The firm has passed a family of five funds through SEC registration and plans to seed the funds with $100 million of assets from current clients of its $250 million advisory business.
The Generation Wave funds are different than most, though. For one, they are being targeted at the small employer 401(k) plan retirement market. To reach this market, founder
Richard Sapio explained that the firm is in talks with 15 third-party administrators and e401k platforms with the aim of enticing them to carry the new funds. Mutuals will pay revenue sharing to the platform directly rather than a 12b-1 fee in order to keep the funds pure no-load.
The firm currently employs ten sales people to reach the qualified plan market.
The funds are part of a larger investment advice service for the 401(k) market put together by Mutuals.com. Participants in plans using the funds will be provided tailored investment advice based on a questionnaire that they complete.
The five Generation Wave funds are: Aggressive Growth Fund conservative, Growth Fund—moderately aggressive, Alternative Growth Fund—moderate, Balanced Growth Fund—moderately conservative and Conservative Growth Fund.
Each of the funds will be a fund-of-funds able to invest in any registered investment company. Their investment philosophy is based on the theories of best-selling author
Harry Dent who is also an investor in the firm. Dent will not play a role in the day-to-day management of the funds.
Sapio explained that funds will be put through 21 objective criteria and that he expects about 15 funds to be in each of the Generation Wave funds at any one time. 
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