Products November 5, 2020

Magnifi Integrates Fi360 Fiduciary Score

Fi360 scores can recommend best-fit products while staying in compliance with Reg BI requirements.

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Magnifi, a TIFIN Group company, and Fi360, a Broadridge company specializing in fiduciary education and technology, announced that they have added the Fi360 Fiduciary Score to Magnifi’s semantic searching and screening platform.

The firms say this integration will give advisers the ability to discover and use investment products while staying within the guardrails of fiduciary risk. Magnifi’s Discovery, Selector and Enhancer tools will now incorporate Fi360 scores to find and recommend best-fit products, in compliance with the Securities and Exchange Commission (SEC)’s Regulation Best Interest (Reg BI) requirements, as part of client and retirement plan management workflows. 

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“Magnifi’s powerful tools are delivering new ways for advisers and investors to leverage natural language and network effects to identify the right funds for their portfolios. We’re excited that the Fi360 Fiduciary Score is now available as a criterion, playing an important role for those who want to include a fiduciary lens within Magnifi’s novel platform,” says John Faustino, head of Fi360.

“The addition of Broadridge Fi360 Solutions’ fiduciary scores to the Magnifi platform enhances its utility for advisers and self-directed investors alike. Advisers can easily discover and recommend lower risk opportunities for clients and prospects with the confidence of Fi360’s fiduciary framework. Given the continued volatility in markets and heightened investor interest in supporting ESG [environmental, social and governance] themes, investors will appreciate Magnifi’s elegance in helping manage risk and intent,” says Rick Hurwitz, CEO of Magnifi.

The firms will host a joint webinar to demonstrate adviser workflows on November 10 at 2:00 p.m. EST. Registration is free and open to all interested parties. More information on the webinar can be found here. 

Client Service November 5, 2020

Experts Discuss Participant Interest in In-Plan Annuities

The SPARK Institute led a panel with industry authorities who explained how they are drawing participants to in-plan annuity options.

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Industry experts reviewed what companies are doing to engage participants with in-plan annuity options during a webinar hosted by the SPARK [Society of Professional Asset Managers and Recordkeepers] Institute.

The panel explored how professionals are addressing lifetime income product adoption, integration, scalability and customer experience with participants who may be reluctant about in-plan annuity options. Doug McIntosh, vice president of investments at Prudential Retirement, said the SECURE [Setting Every Community Up for Retirement Enhancement] Act’s provision to remove the 59.5 age barrier for service withdrawals is a relief to sponsors and participants alike.

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McIntosh said Prudential noted that most participants valued control over their assets, especially during the COVID-19 pandemic when access to emergency savings is critical. “We came to market with a vehicle that offers a living benefit; participants still have control of underlying assets but derive lifetime income for participants and spouses,” he said. 

Sherrie Grabot, founder and chief executive officer at GuidedChoice, said participants are more likely to show interest in in-plan options if they see potential income projections. When such projections are offered, Grabot said she has noticed a change in behavior among participants, including when GuidedChoice rolled out a product in 2011 that allowed participants to see their projected retirement income numbers. “You have to show the income coming out of the defined contribution [DC] plans,” she encouraged. “It increases savings rates when they see that income level.”

On the subject of retirement income, Mike Westhoven, product leader at Micruity, explained the cost of retirement and misperceptions when it comes to annuity fees. An affordable retirement has become synonymous with annuity fees, he said, and annuity pricing has long been regarded as pricey. However, Westhoven said, if a participant refuses an annuity, the future retiree will end up needing to save an estimated $20,000 to $30,000 more to afford the same retirement as one with an annuity. He encourages employers and advisers to ensure their participants and clients understand the misperception. Those who refuse an in-plan annuity option could potentially benefit from one.

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