The Markets July 31, 2007

Advisers Say Clients Like Managed Accounts

Managed money accounts (70%) top advisers’ rankings of investment vehicles “gaining the most favor″ with their clients.
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Alternative investments (52%) ranked second in the results of Brinker Capital’s second quarter Brinker Barometer, a quarterly gauge of financial adviser confidence and sentiment regarding the economy, retirement savings, investing and market performance.

The next most favorable investment vehicles are exchange-traded funds (45%), and stock mutual funds (39%), according to a Brinker press release. Advisers identified individual stocks (29%) and individual bonds (28%) as topping the “losing favor’ list, and bond mutual funds showed an almost 100% increase in “losing favor’ quarter over quarter (13% in Q2 vs. 7% in Q1).

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Twenty-seven percent of advisers identified procrastination as the chief obstacle to their clients saving for retirement, the release said. Other obstacles included extravagant lifestyles (18%), children’s college education (14%), health care costs (14%), and lack of concern (11%).

Overall, survey respondents were optimistic about the future of the country’s economy, with 81% saying they are either “highly confident’ or “somewhat confident’ about the economic outlook. This is an increase from 72% in the first quarter of 2007.

Advisers selected Washington policies (51%) and taxes (51%) as the issues that most negatively impact their clients’ accounts, followed by geopolitical developments (50%) and stock market volatility (47%).

Brinker Barometer results are based on responses from 205 advisers affiliated with insurance companies, independent broker-dealers and in sole practice. More information is at www.brinkercapital.com.

Deals & People July 30, 2007

Jeffrey Carney Is BoA’s New President of Integrated Retirement Business

Bank of America has appointed Jeffrey Carney as president, Bank of America Retirement and Global Wealth&Investment Management (GWIM) Client Solutions.
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Carney, who came to BoA from his position as president of Fidelity Retirement Services, will oversee the development and delivery of integrated retirement solutions for Bank of America’s nearly 17 million customers approaching or living in retirement, as well as its corporate and institutional clients, according to a press release. In his new role, he will expand and execute Bank of America’s enterprise-wide retirement strategy, encompassing all related product, sales and service, marketing and distribution activities.

Carney will also oversee the development of integrated product solutions for affluent and wealthy clients, and serve as president of Banc of America Investment Services, Inc. (BAI), the company’s retail brokerage, the announcement said. He will oversee all brokerage, banking, credit, custom credit, non-proprietary and fee-based investment products, fiduciary roles and philanthropy for GWIM clients, and will be responsible for the company’s mid-market institutional asset management business and all GWIM call center operations.

At Fidelity Retirement Services, Carney was responsible for the firm’s defined contribution, defined benefit, non-qualified plans and health savings businesses.

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