Deals & People February 2, 2010

J.P. Morgan Asset Management Realigns DCIO Teams

J.P. Morgan Asset Management has combined all of its defined contribution investment-only (DCIO) specialist resources into a single unit, DC Investment Solutions.
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The new group combines all of the DCIO groups across JPMorgan Asset Management, including separate retail and institutional sales groups, as well as some resources in the retirement plan services business in Kansas City, according to a J.P. Morgan spokesperson.

According to an internal announcement from last month, DC Investment Solutions will include four teams (Intermediary Sales, Plan Sponsor Sales, Platform Sales, and Business Development) and will be headed by David Musto. The group is based in New York, but has regional presence with national sales representatives. The internal memo said the team will better equip J.P. Morgan Asset Management’s “retail and institutional businesses to gather investment-only defined contribution assets” and “will also partner closely with Retirement Plan Services to develop and share DC thought leadership and best practices for selling our investment capabilities.”

The Intermediary Sales team, led by Glenn Dial, supports the coverage of retirement intermediaries and recordkeeper sales organizations in partnership with J.P. Morgan’s retail sales teams. The team is responsible for directly targeting high-end DC advisers/intermediaries (delivering firm insights, tools, and products); covering recordkeeper sales organizations to uncover opportunities and influence investment selection; and partnering with Plan Sponsor Sales to better lever adviser and platform relationships in institutional opportunities.

The Plan Sponsor Sales team supports investment sales opportunities with plan sponsors in partnership with the Institutional sales teams. The team is responsible for delivering DC expertise and resources in collaboration with Institutional Client Advisors to enhance the targeting and closing of more DC investment sales opportunities; facilitating an efficient/effective sales and onboarding process on DC investment deals; and partnering with Intermediary Sales and Consultant Relations to increase the strength and impact of relationships with advisers and consultants.The Platform Sales team partners with Retail National Accounts to drive the adoption of J.P. Morgan investment products and enhance relationships at focus recordkeeper platforms. The team is responsible for providing relationships and expertise necessary to drive product adoption; supporting the consistent delivery of financial, service and operational elements across DC platforms; and serving as a resource to increase the success of specific sales opportunities through the sharing and coordination of DC product and operational expertise.

The Business Development team will coordinate business management activities for investment-only DC efforts, including business strategy, project management, and business metric analysis. The team will also oversee the development and execution of sales strategies with target intermediary firms.

The leaders of the Plan Sponsor Sales, Platform Sales, and Business Development teams will be announced over the next few months, according to the announcement.

The company also said it formalized two roles in the areas of Marketing and Government Relations. Mark Browne will serve as the lead marketing manager responsible for coordinating J.P. Morgan Asset Management's investment-only DC marketing activities across Retail and Institutional, reporting jointly to Richard Chambers and Daniel Darst. Bob Holcomb, who retains all his existing responsibilities through Retirement Plan Services, will serve as the business lead on both full-service and investment-only DC policy issues and will coordinate the activities of a cross-business DC Policy Working Group.

Data & Research February 2, 2010

Higher Ed Employees not Acting on Retirement Concerns

A recent survey conducted by ING’s U.S. Retirement Services indicates those employed in the higher education community are growing more nervous about their ability to retire comfortably, yet few are acting on their concerns.
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The survey found that nearly two-thirds of respondents (62%) are less confident today about living comfortably in retirement than before the financial market decline in 2008, according to a press release.  However, roughly the same amount (63%) said they do not expect to delay their retirement in light of the market events.

Of those who said they did not seek advice from a financial professional, only about one-quarter (26%) indicated they would consider doing so since the market decline. However, on a positive note, the survey found that a majority (55%) of those age 55 and older did seek retirement advice from a financial professional.

“Like many others in the workforce, a considerable number of education employees may require more guidance than they realize to assess retirement income needs, put a plan together, and adjust their strategy to manage lifestyle and market changes,” said Brian Comer, president of Public Markets for ING U.S. Retirement Services, in the press release.

Although 64% said they had calculated their retirement income needs at some point in life, nearly one-third (30%) have not done so within the past year. In addition, 40% stated they had never changed their retirement plan investment mix, while nearly three in 10 (28%) have not changed this allocation within the past year.

The Web-based survey was commissioned by ING and conducted by Synovate via a national internet consumer panel between October 14 and October 19, 2009.  Respondents included 301 individuals in the U.S. currently employed in the field of higher education (colleges, universities, technical schools, and other post-secondary schools) who participate in their employer’s defined contribution plan.

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