Products January 31, 2011

Principal Offers Fee Disclosure Guidance for Plan Sponsors

A white paper from the Principal Financial Group will help plan sponsors understand and comply with new fee disclosure rules. 
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The paper, “New Participant Fee Disclosure Rules: What Plan Sponsors Need to Know,” was written by ERISA expert Jamey Delaplane of Davis & Harman, LLP. It provides insight on:

  • How plans and participants impacted by the new rules
  • Types of information that must be disclosed (such as investment direction and options, investment fees, administrative charges, individual expenses, performance data and more)
  • Special disclosure rules for certain types of investments like brokerage windows, target-date funds, annuities and company stock
  • Delivery options for participant disclosures
  • Required timing of disclosures
  • Repercussions for failing to meet the new requirements

In October, Principal published a white paper discussing the fee disclosure rules for financial professionals (see “Principal Publishes White Paper on Fee Disclosure Guidelines“).

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Data & Research January 31, 2011

Survey Finds Changed Investing Behavior After Recession

Sixty-two percent of investors changed their approach to investing in the aftermath of the 2008-2009 economic recession, according to a TD Ameritrade survey.
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Reallocating more assets to fixed income, or moving more assets to mutual funds or managed accounts, were the most common changes: 28% of investors reported moving more money into bonds or CDs following the aftermath of the recession, while 23% reported moving their money to mutual funds or other managed investment products.  

A press release said seeking the help of financial professionals is also increasingly important, as nearly one quarter (22%) of investors report relying more on a professional investment adviser following the recession.  

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Men’s risk tolerance took more of a hit compared to women, the survey showed: 

  • 33% of investors who moved more money into bonds or CDs following the recession were men, compared to 21% of women; 
  • 25% of male investors report relying more on a professional investment adviser following the recession compared to 18% of female investors; 
  • 27% of investors who moved their money to mutual funds or other managed investment products following the recession were men, compared to 18% of women; and 
  • 35% of male investors report being more selective in the stocks they buy following the recession compared to 24% of female investors. 

However, male investors have not been discouraged by the markets. The number of men who reported investing new money in the stock market following the recession (20%) is twice that of women who reported the same (10%).  

The survey was conducted online by Harris Interactive on behalf of TD Ameritrade Holding Corporation among 1,088 adults between 22 and 80 years old from September 28 through October 19, 2010.

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