Fund Options

Company Stock

A company may elect to create a new unitized fund based on its existing common stock for the purpose of allowing its’ employees the ability to purchase this stock in a 401(k) plan. The unitized fund combines the company stock with a certain amount of cash to provide liquidity. Combining the stock with a cash component allows employees to trade the units on a daily basis, with next day settlement. The cash component also allows the company to facilitate loans, distributions and fund transfers in the plan.

The UNITZXCHANGE system can accommodate either cash or stock dividends on company stock as well as provide for dividend pass through arrangements. In addition UNITZXCHANGE can initiate in-kind distributions of company stock.