State Street Global Advisors, the asset management arm of State Street Corp., set a new mark for the “Guinness World Records” by getting the most people to ring a bell in one hour on Tuesday, which they did at the Nasdaq MarketSite in Times Square in the hour leading up to the 4 p.m. market close.
The event was billed as a celebration of State Street’s commitment to investors, with the asset manager offering pedestrians in Times Square a free branded hat and T-shirt if they came and rang a bell set up outdoors in the popular tourist destination. State Street’s President and CEO Yie-Hsin Hung spoke at the Nasdaq and rang the closing bell of the exchange.
When it comes to serving participants in defined contribution plans, the Boston-based firm has about $982 billion in DC plan assets and 33 million participants worldwide. In 1993, the firm launched the first U.S.-listed exchange-traded fund, the SPDR S&P 500 Trust ETF.
To get to its record-setting number, the firm called on passerby to join State Street executives in ringing the bell, starting at 3 p.m. ET. The firm set up barriers to direct traffic through the line, with a clock overhead counting down the hour.
“We were walking around, and we heard the bell—we thought it was a [Trump election] protest,” said Karen Kelly, a New York passerby who worked as a nurse for 45 years before retiring a few weeks ago. “We got very excited, but then we just kind of got involved with it. … It was fun [ringing the bell].”
Michael Empric, a Guinness World Records adjudicator, was on site to confirm the record, which Guinness had determined would need at least 250 people to set the mark. State Street smashed that requirement with its 533 ringers.
“We were allowing all Americans to ring the bell,” said Mike Hahn, an executive creative director from McCann New York, who works with State Street on advertising. “We sell ETFs, and those are a very simple product to invest in your future. We like to think that investing in the market is investing in yourself.”
In June, State Street introduced the latest iteration of its target-date investment funds offering, IncomeWise. The solution is aimed to put a guarantee into retirement planning by integrating annuities into a TDF.
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The U.S. Department of the Treasury on Tuesday released the results of a project commissioned by Congress to advise on a strategy to “advance consumer access to safe financial products and services.”
Treasury’s report, the “National Strategy for Financial Inclusion in the United States,” included five areas of focus, along with sample initiatives to improve each. One area of focus, expanding access to savings and investments, leaned heavily on Treasury working to implement and increase take-up of retirement saving initiatives in the SECURE Act 2.0 of 2022, such as the Saver’s Match and emergency savings programs.
“Access to financial products and services is essential to creating opportunity for all Americans,” Janet Yellen, secretary of the treasury, said in a statement. “For the first time, Treasury’s strategy provides a national roadmap to expand access to foundational financial tools like credit and investments that are key to building wealth.”
Treasury’s five areas of focus and recommended initiatives are geared toward policymakers, industry employers and community organizations, according to the report. The team draw on research and engagement with experts, community leaders, industry representatives, other federal agencies and public input, the latter acquired through a request for information.
While the U.S. has a “robust financial infrastructure,” according to Treasury, the report is intended to address the “significant disparities in how different populations interact with and benefit from financial products and services.”
The five areas of focus:
Promoting access to transaction accounts that meet consumers needs;
Increasing access to safe and affordable credit;
Expanding equitable access to savings and investments;
Improving the inclusivity of financial products and services provided or backed by the government; and
Fostering trust in the financial system by protecting consumers from illegal and predatory practices.
For the third objective—expanding equitable access to savings and investments—Treasury noted that both the government and employers should work to expand access to retirement saving accounts for Americans. That includes “tools that facilitate emergency savings” and benefits that “equitably support employee financial health and provide financial education to promote employees’ saving and investing.”
Citing the U.S. Bureau of Labor Statistics, Treasury noted that, as of March 2023, 73% of the total civilian workforce had access to a retirement benefit plan at work, with 56% participating. When considering the lowest quartile of workers by wage, however, fewer than half (49%) had access and only 28% were participating.
Treasury pointed to encouraging implementation of SECURE 2.0 Act provisions in order to improve “equitable access” to tax-advantaged savings programs. Specifically, the Treasury pointed to the Saver’s Match program, which would provide qualifying lower-income workers a federal government match of up to $1,000 in a workplace plan or an individual retirement account. The program is not mandatory for employers to implement; Treasury noted SECURE 2.0 calls for the department to promote the Saver’s Match to the public.
The other programs cited by Treasury were emergency savings accounts tied to retirement savings and the ability for employers to make retirement account contributions to match student loan repayments. Both programs are optional and have, thus far, received skepticism from some industry watchers, as plan sponsors and recordkeepers have numerous mandates and needs other than these provisions.
“Treasury is working on multiple guidance projects related to the SECURE 2.0 Act, including guidance on emergency savings and on student loan payment matching,” the department wrote of furthering uptake.
The department also noted state-facilitated IRA programs that are mandating or promoting retirement savings. States without such programs “should consider establishing retirement savings programs for workers without access to employer-sponsored retirement benefits,” the Treasury wrote.
The report stressed the need for employers to offer workers financial education and advice, saying employers are “well-positioned to provide unbiased financial advice and education.”
On the subject of unbiased advice, the Treasury also expressed its support of the U.S. Department of Labor’s Retirement Security Rule, which was passed with the goal of putting a fiduciary standard on offering retirement investments such as annuities and one-time rollovers. That rule, however, was stayed by two federal courts in Texas earlier this year; the DOL is appealing the ruling.
Kate Griffin, director of programs for the Aspen Institute Financial Security Program, championed the program in a statement and noted that the Aspen Institute had worked with Treasury on the initiative.
“As the first of its kind, the National Strategy for Financial Inclusion puts a stake in the ground for inclusive financial policy and makes household financial security a national priority,” she wrote. “It is a bold plan that harnesses the strengths of the public and private sectors and enacts a shared vision for how policy, products, and business models can create a financial system that supports an inclusive, sustainable economy.”
As a follow-up beyond its own actions, Treasury will measure benchmarks to gauge progress on financial inclusion. It also noted returning to the report as a “foundational document” to be “revisited and built upon over time.”
