The institutional share classes
eliminate the standard 12-b 1 fee, resulting in a lower overall expense ratio,
and have an investment minimum of $1 million.
The funds are the Arrow
Alternative Solutions Fund (NASDAQ: ASFNX), Arrow Commodity Strategy Fund
(CSFNX), Arrow DWA Balanced (DWANX), Arrow DWA Tactical Fund (DWTNX) and Arrow
Managed Futures Strategy Fund (MFTNX).
“Our introduction of a new institutional share class is in direct
response to client demand as advisers seek lower-cost access to nontraditional
investment strategies such as managed futures and other alternatives,” said Day
Thomas, director of Institutional Relationships at Arrow Funds.
The latest 403(b) plan sponsor survey from the Plan Sponsor
Council of America (PSCA), by the Principal Financial Group, shows
more stability and less uncertainty among 403(b) plan sponsors. The percent of
plan sponsors who do not know their Employee Retirement Income Security Act
(ERISA) status decreased, from 10% in 2010 to 6.8% in 2011. Twenty-percent
fewer sponsors are uncertain whether they have an investment policy
statement.
“The engagement of 403(b) plan sponsors is much higher than in
years past. They’re adjusting to the new regulatory environment and show a
much better understanding of ERISA,” said David Wray, president of
PSCA.
Greater use of target-date funds continues, with 72.5% of plan
sponsors offering target-date funds as an investment option, up from 69.1% in
2010.
The number of plans permitting Roth after-tax contributions has
doubled in the past four years. In 2011, 21.7% of 403(b) plans allowed Roth, up
from 16.9% in 2010 and 10.9% in 2007.
(Cont...)
In addition,
403(b) sponsors have enhanced education for and communication with
participants. Use of e-mail communication has increased (65% in 2011 vs. 59.5%
in 2010), as has the use of seminars/workshops (53% in 2011 vs. 41.8% in
2010).
The survey
results show nearly 40% of 403(b) plan sponsors made changes to their plan’s
investment lineup in the last year, and nearly 26% plan a comprehensive
redesign in the next 12 months.
These trends
signal opportunities for financial professionals to provide assistance to
403(b) plans, especially those who work with third-party administrators (TPAs). Nearly 35% of 403(b) sponsors report using the services of a TPA in
2011.
“We’re seeing a
culture of continuous improvement among 403(b) sponsors. Financial
professionals can tap into that by using survey results to help clients
benchmark their programs and shed light on areas that could be enhanced,” said
Aaron Friedman, national nonprofit practice leader, The Principal. “For
instance, nearly 22% of 403(b) plan sponsors said they are still using money
market funds as the default investment option whereas the strong trend among
401(k) plans is to use target-date funds as the default. That, combined with
plan sponsors’ desire to continually renew investment options, could result in
opportunities for financial professionals.”
PSCA’s 2012 403(b) Plan Survey
gathered information about the 2011 plan-year experience of 584 not-for-profit
organizations. Full survey results may be purchased from PSCA at www.psca.org.