Strategic collaboration bolsters clients’ access to fractional real estate investments
OAKBROOK, IL – February 15, 2021 – Millennium Trust Company, LLC (“Millennium Trust”), a leading provider of specialized retirement and institutional custody solutions, announced a new strategic collaboration with Ark7, real estate platform, that will provide Millennium Trust clients with greater access to alternative investment options within their Individual Retirement Accounts (IRAs).
Strategic use of alternative assets, including private equity, real estate, and hedge funds, can improve the overall performance of retirement portfolios according to a joint study conducted by Georgetown University Center for Retirement Initiatives (CRI) and Willis Towers Watson. Their research indicates that including these types of assets can improve the income stream of a well-diversified retiree’s fund by an estimated 17% in the best-case scenario, and by 11% at minimum1.
Investing in alternative assets has traditionally been a complex process, but through Millennium Trust’s strategic collaboration with Ark7, clients can now buy, hold, and sell fractional shares of quality rental properties for income and price appreciation, and achieve greater IRA portfolio diversification through the MTC Investment Platform.
This innovative collaboration further strengthens two leading features of Millennium Trust’s self-directed IRA platform: the breadth of alternative investment options for clients, and its technological innovations which are made possible by the firm’s application programming interface (API). Millennium Trust’s API has been instrumental in implementing Ark7’s offerings and providing sponsors and advisors with enhanced user experiences.
“We are excited to collaborate with Ark7 and further expand on our existing suite of alternative investment offerings,” said Jeremy Christensen, Co-Head of Custody Services at Millennium Trust. He added, “It also takes us another step closer to providing the private investment community with access to the $13.2 trillion dollar IRA industry2, and towards the automation of private investments through IRAs.”
“At its core, Ark7 gives individuals the opportunity to invest in equalized shares of real estate properties in various popular locations, all backed by brilliant software and robust automation,” said Andy Zhao, Co-Founder and CEO of Ark7. “Many of our investors have requested the option to invest through their IRAs to diversify their retirement portfolios. We chose to collaborate with Millennium Trust because of their strong track record of providing API-based IRA custodian services, and their ability to provide efficient, high-quality user experiences.”
About Millennium Trust Company®
Millennium Trust Company is a leading provider of specialized retirement and institutional custody services with more than 2.5 million clients holding over $39 billion in assets. Millennium Trust is committed to the evolving needs of individuals, employers, advisors, and retirement services partners and empower clients with trusted expertise, exceptional service, and access to a wide range of solutions. Whether clients are managing corporate retirement assets, running a business, or wanting choice beyond traditional asset options, Millennium Trusts provides flexible digital solutions to support our clients’ success.
Millennium Trust Company performs the duties of a directed custodian, and as such does not provide due diligence to third parties on prospective investments, platforms, sponsors, or service providers and does not sell investments or provide investment, legal, or tax advice. For more information about Millennium Trust Company, follow us on Twitter and LinkedIn.
Ark7 is the hassle-free, one-stop fractional real estate platform that provides self-motivated investors full control to diversify their portfolios and earn passive income. Ark7 empowers its users to build personalized real estate portfolios with curated properties located in fast-growing markets across the U.S. Its robust digital platform and all-inclusive property management model allows its users to purchase fractional shares in its portfolio of residential properties via the app or online with no minimums. The Ark7 portfolio currently includes properties in Arizona, California, Pennsylvania, Tennessee, Texas, and Washington, with plans underway to expand to other markets across the U.S. Founded in 2018 and led by CEO Andy Zhao, Ark7 provides users with full transparency to control their own investments that fit their budget, and the peace of mind knowing all property management is expertly handled by Ark7. For more information, visit www.ark7.com.
1Source: Georgetown University Center for Retirement Initiatives (CRI) in partnership with Willis Towers Watson, “The Evolution of Target Date Funds: Using Alternatives to Improve Retirement Plan Outcomes”. Policy Report 18-01 (June 2018).
2 Source: Investment Company Institute (ICI), “Release: Quarterly Retirement Market Data” as of September 30, 2021.