Products October 31, 2017

WisdomTree Offers Portfolio Construction Tools

The tools are part of the new WisdomTree Advisor Solutions platform.
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In an effort to assist advisers navigating the challenges of the changing asset management industry while continuing to grow their businesses, WisdomTree Investments has launched the WisdomTree Advisor Solutions platform.

The Advisor Solutions platform, said to provide technology-enabled solutions for advisers, will include: Investment research and exchange-traded fund (ETF) education; portfolio construction services; ETF model portfolios; practice management resources (such as access to thought leaders concerning retirement planning, leadership and behavioral finance); and a wealth management technology tool and an online credibility optimizer from AdvisorEngine.

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The wealth management technology tool, says WisdomTree, will serve as a customizable end-to-end platform for advisers.

“The asset management industry is undergoing rapid change, and technology is disrupting the way advisers do business, says Kurt MacAlpine, WisdomTree head of Global Distribution. “Advisers may face challenges such as accelerating regulatory reform, evolving client needs and pressure on fees. The WisdomTree Advisor Solutions program is designed to help advisers navigate these challenges while continuing to scale their business.”

Additionally, WisdomTree will be offering the Digital Portfolio Developer (DPD) for on-demand analysis. The portfolio construction tool will analyze data from existing investment portfolios, and provide other portfolio approaches for advisers to consider when seeking to improve outcomes based on different measures.

Key features of the tool include:

  • Stress Testing Scenarios: Utilizing institutional-grade analytics delivered by FinMason, a FinTech and investment analytics firm, advisers can compare the hypothetical returns of an original portfolio and a proposed portfolio during different market scenarios such as a financial crisis or Federal Reserve rate hike.
  • Compare Portfolios: Advisers can input and compare two portfolios side-by-side based on key metrics to help the adviser determine underlying risks and seek opportunities to improve performance, income and/or fees.
  • Open Architecture Platform: The tool includes more than 25,000 mutual funds and ETFs with holdings-level analysis and real-time calculations.
  • Usability: Advisers can access the DPD on-demand and at no cost to use the tool. In addition, advisers can save their analysis, download reports, and export example trade tickets based on the output.

“The Digital Portfolio Developer provides an additional perspective to help advisers quickly and easily analyze client and prospect portfolios,” says David Yates, WisdomTree chief information officer. “In addition, the incorporation of FinMason’s powerful platform allows advisers to evaluate performance and conduct certain stress tests, such as how a portfolio may fare during hypothetical market events.”

More information about WisdomTree’s tools can be found here. 

Data & Research October 31, 2017

Financial Wellness Programs Popular With Health Care Employers

Over 40% of survey respondents indicate their organization has been offering a financial wellness program for 5 years or more.
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Financial wellness programs are a growing offering among all employers, but a Cammack Retirement Group study of such programs at health care organizations in the U.S. found an especially high adoption rate. 

Eighty-three percent of the organizations surveyed responded that they offer wellness programs to their employees, with another 15% indicating that they are considering doing so. At organizations with more than 1,000 employees, 100% indicated that they either already have a wellness program or are considering offering one.

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Most health care employers attempt to integrate their financial wellness programs with other available benefits. Fifty-two percent of survey respondents look to coordinate their educational programs to provide a more cohesive collection of benefits and a more unified message to their employees, while another 13% are considering doing so.

More than 40% of survey respondents indicated that their organization has been offering a financial wellness program for 5 years or more.

For those health care organizations providing a financial wellness program, there are many topics currently offered or being contemplated. Social Security has been receiving the most attention, with 89% of respondents providing education about it.

Beyond Social Security, other topics respondents cited include developing a personal budget, purchasing a home, determining how to finance a college education and protecting one’s identity.

Retirement, pre-retirement and income planning are ever-popular topics with employees and employers alike and give employers an opportunity to highlight their existing retirement benefits. Additionally, there is increasing interest in understanding health savings accounts (HSAs).

NEXT: Student loan debt and measuring financial wellness program success

Wellness topics some respondents consider offering in the future tend to revolve around retirement and related areas. However, others mentioned by respondents include Medicare readiness and health care literacy, reflecting the importance of health care and the uncertainty associated with its future. Other popular topics include improving employees’ credit scores, as well as helping employees save money for college and dealing with student loan debt.

Overall, 42% of respondents said student loan debt is a major concern for a majority of their employees or that it affects a significant portion of them. Another 37% are unsure how big a concern this issue is for their employees. While 21% indicated that only a few employees are affected, no respondents said it is not an issue.

Only 21% of responding health care organizations offer seminars or other programs to assist employees affected by student loan debt. These seminars are more popular with larger organizations, as 28% of respondents with over 1,000 employees provide programs on the topic. Most of that previously mentioned 21% also provide some financial assistance to those burdened with student loan debt; 17% of respondents indicated offering some such support. Forty-four percent consider offering a program where employee contributions to student debt will be matched.

Most employers appear to be delivering their wellness educational programs through multimedia approaches. Health care employers are incorporating printed materials, videos and online information, along with human interaction. Group seminars and one-on-one meetings remain the most popular approach, as more than 85% of respondents offer both of these formats.

While 73% of respondents indicated that their program is either very much appreciated or moderately appreciated, more than one in four said appreciation is less than they had hoped.

Improved retirement readiness is the most popular metric used to indicate the success of a financial wellness program offering, with more than two-thirds of respondents employing that measurement criteria. Use of the wellness tools, and increased savings, are also seen as measurements of a program’s success.

One reason organizations cited as to why they decided to offer a wellness program was that the stress caused by financial concerns led to reduced productivity and absenteeism. Yet, according to the survey responses, no organizations are using these metrics to gauge the impact of their program. Cammack says this may be due to difficulties in gathering information on causes, as employees may not want to tell their employer that financial difficulties caused them to take a day off or to be late completing a project.

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