When asked how they would like to receive advice, respondents reported preferences for receiving advice as often as they have questions and through channels like email and 1:1 sessions, according to a new study by Betterment.
Most 401(k) participants prefer to receive advice on their
retirement investments through email and one-on-one counselling sessions, according to a survey
by Betterment for Business, the technology-focused 401(k) provider.
The “most preferred
cadence” for advice was “as often as a question arises” (28%), suggesting a need
for personalized, on-demand advice. The study also identifies room for improvement in terms of how advisers are interacting with current and potential clients.
In fact, most participants surveyed (53%) say they receive no
advice on their retirement investments at all. This statistic is of particular
concern considering separate studies projecting low
returns for the long-term and participants’ common misconceptions
about retirement savings.
Nonetheless, the Betterment study finds that financial
advisers remain the most utilized source for retirement advice among those who
seek it. Of these, 65% work with a financial adviser, as opposed to other potential sources of guidance, such as a bank or an insurance agent. Most say they either
fully trust or place a lot of trust in their financial advisers.
Betterment notes that this data arises as news around
the Department of Labor (DOL) fiduciary rule reveals to many consumers that the financial advice they received on retirement
investments could be subject to conflicts of interest. However, the firm’s survey found that fiduciary
awareness is still just taking hold. Only 42% of respondents correctly identified what a
fiduciary is in the retirement planning context. Moreover, 27% did not know what a fiduciary was at all, and 20% believed
financial adviser and fiduciary were synonymous.
Of those aware of the details of the changing fiduciary duty, 84% still have taken no action, such as asking whether their personal advisers are fiduciaries. But of those that did
take action, 48% decided to find a new adviser.
“The recent fiduciary ruling developments have spurred
conversation around what credible advice should look like, and many advocates
of the rule have hoped that investors would demand accountability from their
financial professionals,” observes Jon Stein, CEO, Betterment. “All savers have the
right to sound, reliable and personalized advice on their retirement
investments, and as people demand and exercise that right, retirement outcomes
can improve.”
In addition, the Betterment survey shed light on how participants
are saving. Consistent with previous reports, it noted that automatic
features seem to be boosting participation. The survey found that 94% of
participants with auto-enrollment continue contributing to their plans. Half
even increased their contributions. Most (78%) also didn’t opt out of
auto-escalation. Betterment notes, “Millennials seem to like
auto-escalation—but in practice, might not be using it most effectively,
further underscoring the need for relevant, timely advice and education.”
Betterment for Business’s Consumer Retirement Advice
Report was produced with data from 1,051 consumers who work at small and
medium-sized businesses and currently contribute to their employer-sponsored
401(k) plans.
CANNEX Financial
Exchanges, an independent provider of annuity pricing and analytics to the
financial services industry, welcomes Tamiko
Toland as its new head of Annuity Research.
Toland will be responsible for product research on the
annuity market and she will contribute to the development of CANNEX services. She
brings to her role 15 years of experience as a researcher and editor focused on
retirement income and annuities. Toland will provide financial institutions and
annuity product manufacturers with insights into product design and trends.
Toland most recently served as managing director, Editorial
and Research Operations/Retirement Income Consulting, at Strategic Insight,
parent company of PLANADVISER. While there, she managed the firm’s Annuity
Insight service. Her responsibilities included authoring and editing research
reports about various topics including managed volatility funds and in-plan
guarantees. Prior to Strategic Insight, she was managing editor at Annuity
Market News, a SourceMedia publication that provided industry news about fixed and
variable annuities, as well as variable life insurance.
“At a time of industry change and investor uncertainty, the
perspective and analysis Tamiko will offer has never been more valuable,” says Gary Baker, president, CANNEX USA. “As
we continue to expand our annuity evaluation and selection services, she will
be a resource for clients and the media, as well as our development and
client-facing teams.”
NEXT: Northern Trust Expands Foundation &
Institutional Advisors
Northern Trust
Expands Foundation & Institutional Advisors Team
Northern Trust Wealth
Management has added three new team members to the Foundation & Institutional Advisors (FIA) practice, which serves
nonprofit organizations through investment management solutions, insight and
resources.
The new members are Cord
Dannen, CFA, in Washington, D.C.; Ryan McCauley in Houston, Texas; and Patrick Nolan in Tampa, Florida.
Dannen and Nolan
are senior institutional investment advisors
in their regions. They will work closely with the staff, investment committees
and boards of nonprofits to develop, implement and monitor customized
investment programs that support their missions and long-term investment goals.
Before joining Northern Trust, Dannen was an investment director at Cambridge Associates
in Arlington, Virginia. Nolan joined Northern Trust in 2014 as a portfolio
manager in Asset Management for the Northern Large Cap Growth and Value
Portfolios.
McCauley is a regional director. He will work with a
variety of organizations to implement customized investment solutions and he will
consult directly with boards and professional staff to implement consulting,
asset management, custody, and planned giving services that align with their
missions and values. Prior to his current position, McCauley was a vice
president and relationship manager for higher education, health care and
not-for-profit clients of J.P. Morgan in Texas and Alabama.
“To further our commitment to providing an extraordinary
client experience, we continue to seek talent capable of providing
best-in-class advice and service to our clients,” says Darius A. Gill, national practice executive for FIA.
NEXT: BPAS Hires
External Wholesaler
BPAS Hires External
Wholesaler
BPAS, a national
provider of retirement plan and fund administration services, announced that Donna Kramer has joined the
firm as an external wholesaler located
in the New York City area. Kramer will focus on marketing the firm’s defined
benefit (DB) and defined contribution (DC) administrative services in partnership
with advisers, corporate trustees and other financial intermediaries in the region.
She has spent the last 25 years at an advisory firm in the
NYC metro area. During her tenure, Kramer specialized in servicing non-profit
organizations with a particular emphasis on executive compensation programs. She
has supported hospitals and physician groups; developed participant education
strategies; and acted as a liaison between plan sponsors, their ERISA
attorneys, and retirement plan committees.
“We are thrilled to have Donna Kramer join our firm,” says Paul Neveu, president of BPAS Plan Administration & Recordkeeping Services.
“Considering Donna’s knowledge of both the DB and DC marketplace and her
extensive experience working with plan sponsors, she’ll be an outstanding
resource to financial intermediaries in New York City and surrounding areas.”
NEXT: Conning Expands
Investment Leadership Team
Conning Expands
Investment Leadership Team
Global investment management firm Conning has announced the appointment of Paul Norris as managing
director, head of Structured Products.
Leading a team of traders and analysts, he will be responsible for overseeing
all research, investment and trading in structured securities for Conning in
the U.S.
Norris joins Conning from Mariner Investment Group, where he
was a portfolio manager for a mortgage hedge fund and focused on mortgage
derivatives. Prior to that, Norris was head of Securitized Products at Dwight
Asset Management, where he led a team of portfolio managers, traders and
analysts managing that sector.
Conning also announced the promotion of Matthew Daly to managing
director, head of Corporate Credit
Research. He will be responsible for overseeing the corporate credit
research team.
Daly has been with Conning since 2003. He joined the firm
from Webster Bank, where he was employed as a credit analyst following
non-investment grade leveraged loans.
“We continuously strive to build out Conning’s global team
of seasoned investment professionals, grooming senior executives from within as
well as attracting top talent in the market,” says Rich Sega, chief investment officer at Conning.
NEXT: Russell
Investments Names New CEO
Russell Investments
Names New CEO
Global asset manager Russell
Investments announced that Michelle
Seitz has been named chief executive
officer and a director on the
firm’s board. She will become chairman of the board effective January
1, 2018, and will be based in the firm’s headquarters in Seattle. She succeeds Len Brennan who will serve as chairman of Russell Investments through
the end of 2017, after which time he will become a strategic adviser to the firm.
Seitz joins Russell Investments following 16 years leading
William Blair Investment Management (WBIM) and serving on the seven-person
executive committee of William Blair. She led the growth of WBIM’s
institutional business from $2.3 billion in AUM to $65 billion.
“We are excited to welcome Michelle as Russell Investments’
new CEO, and believe that her forward-looking leadership will help propel the
firm into a new phase of evolution and growth that will benefit clients and
associates alike,” says Todd R. Crockett,
managing director, TA Associates.
NEXT: Voya Investment
Management Hires Head of Product Strategy
Voya Investment
Management Hires Head of Product Strategy
Voya Investment
Management has hired Dina Santoro
as a managing director and head of Product and Marketing Strategy.
In this role, Santoro will lead and execute the strategic
product and marketing agenda for Voya Investment Management. Leading a team of
45 product and marketing professionals, Santoro will work with the firm’s
investment and distribution teams to optimize Investment Management’s “go to
market” strategies with investment products to meet client
needs.
Prior to joining Voya Investment Management, Santoro was a
managing director and head of Product Strategy and Distribution at QMA, a
global investment management division of Prudential. There, she served as part
of the executive management team that was responsible for shaping
organizational strategy and managing the business operations of the firm.
“I’m pleased to welcome Dina to Voya,” says Shaun Mathews, senior managing director and head
of the Client Group at Voya
Investment Management. “With great people, a unique culture and a distinct
brand, Voya Investment Management continues to achieve strong results by
focusing on our clients. As a member of our leadership team, Dina will help us
advance Voya Investment Management’s momentum by developing and delivering
solutions that meet our clients’ long-term investing needs. I’m looking forward
to working closely with her.”
NEXT: Aon to Acquire
Townsend Group
Aon to Acquire
Townsend Group
Aon has entered into a definitive agreement to acquire The Townsend Group, majority owned by Colony NorthStar, a global real estate and investment management
firm. Aon is a global professional services firm providing various risk,
retirement and health solutions
Townsend is a provider of global investment management and
advisory services primarily focused on real estate. This transaction will contribute
to Aon’s offering in alternative private market assets.
Aon has agreed to acquire Townsend for $475 million subject
to certain purchase price adjustments, the firm reports. The transaction is
expected to close over the next six months, subject to customary closing and
negotiated conditions. No other financial terms were disclosed by Aon.
With the integration of Townsend’s solutions into its
Investment business, Aon will expand its investment capabilities, which include
outsourced chief investment officer (OCIO) services and advisory services for
large and mid-sized global organizations.
“Our clients’ investment strategies are focused on driving
the strongest risk management and return outcomes, and alternative private
market investments are playing an increasingly important role in those
strategies,” says Cary Grace, chief executive officer of Global
Retirement & Investment Solutions at Aon. “This acquisition will unite
two investment industry leaders that provide objective advice and implemented
OCIO solutions to institutional investors. Together, we will expand our
capabilities and expertise to create sophisticated investment solutions that
best serve our clients and further accelerate our growth.”
Terry Ahern, CEO of Townsend Group, says, "We were
happy to have a large number of quality firms that wanted to partner with us,
but it was the commonality of culture, approach and expertise that led us to
Aon. We look forward to having additional opportunities to continue our
evolution that we began 30 years ago, while leveraging the platform,
capabilities and people that, together, Aon and Townsend can offer to
clients."
Ahern will continue to lead real estate and real asset
investment services as part of Aon’s Global Retirement & Investment
organization.