Deals & People September 10, 2013

Mercer Names Global Head of Investment Research

Mercer appointed Deb Clarke as global head of Investment Research.
Reported by

Clarke will lead Mercer’s professionals who ensure the effective supply of both strategic and manager research to clients. The role will include responsibility for manager research, oversight of strategic research, and asset allocation analysis.

“As one of our most experienced and senior investment leaders, Deb is ideally positioned to assume this major research responsibility at Mercer,” said Phil de Cristo, president of Investments. “The ability to integrate manager research and strategic research has never been more important, given the volatile investment environment. Drawing upon her experience and insights, as global head of Investment Research, Deb will be leading one of the most highly regarded global research teams as we help our clients navigate current market challenges.”

Never miss a story — sign up for PLANADVISER newsletters to keep up on the latest retirement plan adviser news.

Clarke joined Mercer in 2005 and most recently has been global leader of Mercer’s Equity Boutique, a unit within Mercer’s investment consulting business. Based in London, in that role she managed a group of more than 30 asset class specialists around the world who research a broad range of equity strategies.

She has specialized in researching global and global emerging market equity managers. She also chairs Mercer’s International Rating Review Committee and is a member of the Asia Pacific Rating Review and Mainstream Asset Investment Committees. She works with a broad range of clients, advising on portfolio construction and manager selections.

Prior to joining Mercer, Clarke was a senior investment consultant at Watson Wyatt, and previously was a fund manager for 20 years, which included responsibility as head of equities at Friends Ivory & Sime.

Separately, Divyesh Hindocha, senior partner and global director of Consulting, responsible for Mercer’s strategic research capabilities globally, will join Schroders in the UK as global head of Product and Defined Contribution, effective November 1, 2013.

Data & Research September 10, 2013

Pluses to Nonprofits Using 403(b) Plans

There are a number of advantages to using a 403(b) retirement plan for nonprofit organizations.
Reported by

In a recent DC Dialogue newsletter from the investment management firm PIMCO, Stacy L. Schaus, PIMCO’s executive vice president and Defined Contribution (DC) Practice leader, discussed the advantages of 403(b) plans compared with 401(k) plans with Ryan Gardner, principal of Fiduciary Investment Advisors, and Mark Wetzel, president of Fiduciary Investment Advisors.

Both Gardner and Wetzel support the inclusion of retirement income strategies and advice for participants, and they believe the perfect DC plan is one with sufficient contributions, limited leakage and the option for participants to convert some or all of their savings into income, something many 403(b) plans offer.

Want the latest retirement plan adviser news and insights? Sign up for PLANADVISER newsletters.

Gardner told PLANSPONSOR, “Prior to July 2007, when the Treasury Department and the Internal Revenue Service finalized the first comprehensive 403(b) regulations since 1964, 403(b) plans had been the plan of choice for many nonprofit organizations. The lack of certain testing and audit requirements, as well as the ability to avoid ERISA [Employee Retirement Income Security Act] regulations made them popular among nonprofit plan sponsors.”

Today, said Gardner, with the new regulations in place, the regulatory framework for 403(b) plans is more similar to 401(k) plans. “The opportunity for some 403(b) plan sponsors to avoid ERISA requirements remains. However, the new requirements are strict. Similarly, the lack of nondiscrimination testing for some organizations, as well as other special catch-up contribution features, may still appeal to nonprofit plan sponsors. While there are a number of pros for both 403(b) and 401(k) plans, ultimately it comes down to the individual plan, plan design and the overall goals and objectives of the plan sponsor.”

Gardner said there have been several improvements to 403(b) plans since the 2007 regulations were passed, many of them benefitting participants.

“One of the most positive changes that has occurred relates to fees,” said Gardner. “For years, fees that were charged within 403(b) plans were less than transparent and in some cases had little correlation to the overall size of the plan and the services being provided to the plan. Shortly after the regulations were finalized, a tremendous emphasis was placed on the transparency of fees, individual plan pricing and the establishment of appropriate benchmarks. Over time, this has led to more appropriate plan fees, the availability of lower fee share classes, ERISA budgets and, for some plans significant fee savings to participants. Today we’re continuing to see the evolution of plan fees with many plan sponsors evaluating new and different pricing models as well as the notion of levelized pricing.”

A copy of the PIMCO article can be found here.

«