Deals & People June 17, 2009

Financial Telesis Signs BCI-Group to Network

Financial Telesis Inc., (FTI), a full-service broker/dealer and registered investment advisory firm, said employee benefits consulting firm BCI-Group has joined FTI’s network.
Reported by

FTI also entered into an exclusive agreement with Retirement Plan Advisory Group (RPAG) to provide new FTI advisers with RPAG’s practice management platform, according to a news release.

RPAG members access a complete practice management platform of tools, processes, and training for retirement plan advisers, according to the release. Member benefits include an exclusive MarketIngenuity Plan with national advertising, client communication, adviser portal, and a proprietary Fiduciary Briefcase for online administration (see “Retirement Plan Advisory Group Launches Fiduciary Fitness Program’).

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“We see high value add to us and our clients with Financial Telesis and RPAG. Their efficient and personalized compliance administration tools and enhanced trust/fiduciary services complement our offering,’ said Nicholas Kralj, BCI-Group, which is based in Portland, Oregon.

The Markets June 16, 2009

Participant Transfers Follow Equity Market Rally

Participant transfers in May moved toward equities and away from fixed income, according to the Hewitt 401(k) Index.
Reported by

A Hewitt news release said at total of $502 million moved out of fixed income during the month.

The percent of equity-oriented days in May was significantly higher than in past months, with 65% of days experiencing equity-oriented transfers (versus 52% in April). The 20 May trading days saw seven days where trading was fixed-income-oriented and 13 that were equity-oriented.

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On average, 0.05% of balances were transferred on a net daily basis during the month, which is on par with the trailing 12-month average of 0.05%, Hewitt said. Three days during the month May had above-normal transfer levels.

According to Hewitt, inflows were spread out among equity investments, although international and emerging markets fund inflows topped $140 million for the month. Large-cap funds had asset gains of $110 million and lifestyle funds bulked up over the month with a $97-million gain.

Meanwhile, stable value funds experienced May outflows of $455 million, followed by bonds, which shed $46 million. The GIC/Stable Value category saw an 86.08% outflow during the month.

Participants’ overall equity allocation was up significantly, from 49% at the end of March to 53.3% at the end of May, because of both positive stock market returns and participants’ transfers. Some 13.59% of participants’ overall allocation was in company stock, 31.64% in GIC/stable value, 16.06% for large equity, and 9.65% in lifestyle/pre-mix.

Hewitt said employee-only contributions to equity also grew: 56.6% of new contributions in May versus 55.8% in April.

The Hewitt data is here.

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