Products July 2, 2014

Cambridge Adds New Adviser Support Tools

Cambridge Investment Research announced two new partnerships that bring expanded client service capabilities to the firm’s independent advisers.
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The partnership with Castle Rock Innovations brings the Axis Retirement Analytics Platform to independent advisers working with Cambridge. The analytics platform is designed to help advisers with data aggregation and plan benchmarking efforts, according to the firms, and also provides a transparent method for advisers to deliver required plan disclosures to sponsor clients.

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In addition to partnering with Castle Rock Innovations, Cambridge has partnered with Edu(k)ate, an adviser platform that “creates a social eco-system for retirement plans using gamification techniques.”

“Edu(k)ate is a unique offering since it allows our advisers to deliver targeted communication and education to participants on a more frequent basis than the typical annual education program,” explains Colleen Bell, an assistant vice president of corporate strategies for Cambridge. “The platform allows our advisers to manage and engage with retirement plan participants, deliver both core and custom educational content, and track their results and progress.”

More information on the new offerings and Cambridge advisers is available at www.joincambridge.com.

The Markets July 2, 2014

Corporate Pension Liabilities Declined in June

The funded status of corporate defined benefit (DB) plans in the United States increased to 92% during June, with liabilities decreasing 0.2% during the month.
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A recent analysis by the BNY Mellon Investment Strategy and Solutions Group (ISSG) shows that the funded status of the typical U.S. corporate pension plan increased 1.4 percentage points in June, driven by rising asset values.

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The BNY Mellon Institutional Scorecard for June notes assets at the typical corporate plan rose 1.4%. Year to date, the funded status of corporate plans is down 3.2 percentage points, according to the scorecard.

“Corporate plans also benefited from a slight rise in interest rates, which reduced liabilities,” says Andrew D. Wozniak, head of fiduciary solutions, ISSG, based in New York. “June ended a string of three consecutive months of falling rates, which had been driving liabilities higher.

“Equities have continued rallying since April as economic data appears to indicate strengthening global growth,” Wozniak adds. “If the funded status continues to rise, we expect more plans to implement strategies that better insulate them from future market volatility.”

The decrease in liabilities for corporate plans in June was due mainly to a four-basis-point increase in the Aa corporate discount rate, which reached 4.32%. Plan liabilities are calculated using the yields of long-term investment grade bonds. Higher yields on these bonds result in lower liabilities.

The BNY Mellon Investment Strategy and Solutions Group is a division of The Bank of New York Mellon.

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