The Markets January 30, 2009

Affluent Americans Use SRI

Seven in 10 wealthy Americans reported having socially responsible/green investments (SRI), according to a survey by PNC Wealth Management.
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Seventy-one percent of surveyed Americans (with more than $500,000 in investable assets) have SRI and green investments in their portfolio, according to a release from PNC Wealth Management, a member of the The PNC Financial Services Group, Inc. The survey also found that 57% have up to 25% of their portfolio in such investments and 9% have between 25% to 50%.

One quarter (25%) of surveyed Americans believe that green investments will gain in 2009.

“We have seen a discernable trend in recent years by the wealthy to put at least some of their funds into green and socially responsible investments,” said Bruce Bickel, senior vice president of PNC Wealth Management, in the release. “It is not a complete buy-in yet, but the results unquestionably show us they want part of their investments to be in companies that reflect their own values.’

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Going Green

In general, affluent Americans are showing more concern for the environment in their daily lives, PNC said.

In their business lives, 39% of respondents said they “do business with companies that have socially responsible corporate initiatives,” while only 15% disagreed.

In their home lives, the majority of respondents (83%) recycle at home, and 56% “choose paperless options whenever it is offered.” More than half (53%) said they will consider environmental issues when they renovate or upgrade their home. Thirty-nine percent plan to buy a hybrid car.

The survey was conducted online within by Harris Interactive in September and October among 1,263 American adults (age 18 or over) with annual incomes of $150,000 or above (if employed), at least $500,000 of investable assets (unless retired), or at least $1 million of investable assets (if retired).

See also: “SRI Options in DC Plans Will Grow,’ “EBSA Cautions on SRI Focus,’ and “Web Site Features Free SRI Screening Tool’

Products January 29, 2009

Principal Toolkit Aids with Disclosures

The Principal Financial Group has unveiled new tools to help plans comply with new disclosure mandates for the Form 5500 and new requirements for retirement plan financial statements (FAS No. 157).
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A Principal news release said the materials include help for 403(b) sponsors who now have to file a Form 5500.

The new offerings include:

  • A white paper, “The Road to Transparency: Form 5500 Annual Reporting, 403(b) Plans and Fair Value Measurements (FAS 157).”
  • A Form 5500 Quick Reference Guide.
  • A review of “Value and Reporting of Retirement Plan Assets—FAS No. 157.”
  • A fiduciary handbook: “Understanding and Managing Fiduciary Responsibility.”

“These are sweeping changes in retirement plan reporting. For the first time, plan sponsors will have to formally document information they haven’t had to set in writing before,” said Aaron Friedman, national non-profit practice leader for The Principal, in the announcement. “That will be no small task. Our new tools will help them collect and file the information they need and understand how to report it when the time comes.”

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