US technology firm
SunGard and
iShares, the exchange traded funds business that is part of Barclays Global Investors, are to launch a new system supporting the integration of ETFs as standard options in retirement plans.

ETF trading has boomed in recent years, and has been boosted even further by the financial crisis with investors drawn to these vehicles’ transparency, liquidity and low costs. However, the operational barriers of trading ETFs using recordkeeping systems build around mutual funds has, until now, limited their growth in retirement plans.

With the new launch, advisors and third party administrators using SunGard’s Omni and Relius recordkeeping platforms will be able to access and trade iShares ETFs through an integrated link to the SunGard Transaction Network. Through this the firm aims to offer a cost-effective, automated methodology for adding ETFs to retirement plans – a process which SunGard says is traditionally expensive and burdensome.

“ETFs have continued to experience tremendous growth as investors seek alternative options to fund their retirement. SunGard’s ETF solution will help provide the trading support and operational efficiencies that TPAs and their advisors need to help clients better manage risk through portfolio diversification,” said Darek Wojnar, head of product strategy at iShares.

In other recent developments, last week SunGard launched a new suite of energy data management tools for Aligne, its multi-commodity software suite which integrates data management, trading, risk, credit, fuels procurement, emissions compliance, back-office, treasury/finance and management information needs.