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Caldwell Trust Company announces significant fee reduction for many retirement benefit plans that it manages

by Sheryl Vieira
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SARASOTA, FL - “Caldwell Trust Company is pleased to announce a significant investment fee reduction for many retirement plans that we manage as plan trustee,” said R. G. “Kelly” Caldwell Jr., CEO and president. “The savings result from a decision by Vanguard, one of our providers, to move investors in many of its funds from the Investor share class to the Admiral share class, which operates at much lower costs.” As an example, he compared the expense ratio for Vanguard 500 Index Fund Investor Shares (VFINX) of 0.17 percent with that of the Vanguard 500 Index Fund Admiral Shares (VFIAX), which is significantly lower at 0.05 percent. Vanguard describes this ratio as “95% lower than the average expense ratio of funds with similar holdings” (Morningstar, 2014).

“Caldwell’s menu of mutual funds in our retirement services business includes a number of funds in Vanguard’s Investor share class,” said John L. Tufaro, Caldwell Trust Company assistant vice president, employee benefit plans. “We have agreed to convert these to the Admiral class on behalf of our 401k and 403b clients, in keeping with our commitment to ensure that our retirement plan participants receive the highest quality of choices at the lowest cost. The savings go back into our clients’ portfolios, enhancing returns and performance.” Kelly Caldwell noted that Caldwell Trust Company has never charged commissions for its investment services, participated in revenue sharing nor sold financial instruments such as insurance policies. “We have no incentive to mark up our services, and therefore no conflict of interest,” he said. “This allows us to maintain our objectivity when making investment decisions for our clients.”

For information about Caldwell’s retirement plan services, email John Tufaro at john@ctrust.com or phone him at 941.493.3600. To learn more about Caldwell Trust Company, visit ctrust.com, email info@ctrust.com or phone 941.493.3600 (Venice) or 941.926.9336 (Sarasota).