Products October 28, 2014

Pershing Expands FundVest Platform

Pershing LLC, a BNY Mellon company, added new advisory and institutional share classes from nine fund families to its FundVest mutual fund platform.
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Pershing says it is responding to client and investor demand for more choice and lower fees by adding 271 advisory and institutional class funds to FundVest. This increases the total number of advisory and institutional share class funds in the FundVest institutional program to 1,385, representing a total of 24 fund families.

The firm says the FundVest platform stands out because it features only no-transaction-fee mutual funds.

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“We’re seeing a growing number of firms migrating from the retail share class to less-expensive institutional shares in advisory programs, with particular interest in a no-transaction-fee platform,” says Sandy Bolton, managing director of financial solutions at Pershing. “These share class additions to FundVest translate into a true competitive advantage for Pershing clients since it is uncommon for institutional and advisory share classes to be offered on a no-transaction-fee platform.”

The new additions to FundVest include share classes from 361 Capital, Baron, Deutsche Funds, Hartford Funds, Forward, Legg Mason, Pacific Life, Pear Tree and Prudential Investments.

“We expect to continue adding more funds in the future,” Bolton says, adding that the FundVest platform recently crossed the $100 billion asset level.

Through the FundVest platform, Pershing clients have access to FundVest 200, a research-driven list of no-transaction-fee funds and accompanying research reports. FundVest 200 represents approximately 40 investment categories, including non-traditional liquid alternative asset classes. The list is designed to help advisers with fund selections in the rapidly growing rep-as-portfolio manager programs.

More information on FundVest and Pershing is available here.

Data & Research October 28, 2014

Adult Children May Undermine Parents’ Retirement Security

Six in 10 American parents support their adult children financially, according to a study from the LIMRA Secure Retirement Institute.
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Parents with Millennial children most often help to pay for cell phones and mobile service, college expenses and loans, rent or mortgage payments, and even entertainment costs, such as for movies or sporting events (see “When Adult Children Ask for a Loan”). The majority (57%) of Americans with adult children have at least one adult child living at home, the study found, and nearly three-quarters of parents whose children are 18 to 22 years old have at least one adult child living at home.

“While Millennials are the most educated generation in history, nearly four in 10 are unemployed and many more are underemployed,” says Deb Dupont, associate managing director, LIMRA Secure Retirement Institute. 

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“Parents of Millennials, even those over the age of 22, are providing considerable support to their children at a time in their lives when saving from retirement should be a priority,” she adds. Less than half (45%) of parents who have supported their adult children financially in the past year report that this has negatively affected their savings for retirement. However, Dupont points out, many people underestimate the collective impact of incremental costs. 

“Prior LIMRA Secure Retirement Institute research found that more than 50% of pre-retirees have less than $100,000 in financial assets,” Dupont says. “Even $100,000 in total savings will not be enough money to fund the 20 to 30 years these individuals are likely to face in retirement.”

The study findings are based on a nationally representative survey, fielded in July, of 1,009 Americans.

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