Data & Research March 17, 2009

Advisers Say Many Won’t Retire on Time

Market depreciation is the top reason for clients’ retirement savings to be off-target, independent advisers reported.
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In the most recent Brinker Barometer by Brinker Capital, surveyed independent advisers cited market depreciation as a top reason for clients’ retirement savings to be off target (cited by 219 advisers). That was followed closely by “did not start saving soon enough” (179 advisers).

Furthermore, nearly half (48%) of advisers said they are seeing an increase in clients tapping retirement savings to provide liquidity for near-term expenses. The survey also found that the top client concern cited by advisers (168) is “inability to retire on time”—even higher on the list than “job security.”

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Three-fourths of surveyed advisers expect some of their clients to work past the age of 65. The largest chunk of advisers (33%) expect one-quarter to half of their client base to work beyond the traditional retirement age.

The overwhelming majority of surveyed advisers (84%) do not think the government should mandate employee and employer participation in a 401(k) program.

Despite the toll the markets have taken on client portfolios, many advisers seem confident in their business. While few advisers said they were “highly confident” in the economy or the market, most are highly confident (51%) about their practice, although that is a slight drop from the Brinker Barometer taken in the fall (see “Advisers Remain Confident—Especially about Business“).

The majority (61%) of surveyed advisers said the disruptions in wirehouses and other financial institutions are a benefit to new client acquisitions.

The Brinker Barometer was conducted online by Brinker Capital in February. Results are based on responses from 266 advisers affiliated with insurance companies, independent broker/dealers, and singe-person practices.

Products March 16, 2009

Janus to Merge Two Mutual Fund Trusts

Janus Capital Group Inc. announced that the Janus Adviser Series fund (JAD) trust will be merged into the Janus Investment Fund (JIF) trust.
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The merger, which is expected to occur on or about July 6, 2009 and has been approved by trustees of the Janus mutual funds, will reorganize and simplify Janus’ product offerings and provide investors with a broader range of investment strategies, the company said in a press release.

Historically, Janus organized its retail mutual funds into two separate trusts. The original mutual fund trust JIF was designed primarily to meet the needs of the self-directed investor offering a single class of no-load shares. In 2000, the JAD trust was introduced with multi-share class pricing to meet the evolving needs of investors who were choosing to use financial intermediaries.

The two trusts are comprised of very similar products managed by the same portfolio managers or teams. “In response to changing market conditions and investor migration toward advice-driven channels, Janus believes that it is in the best interest of its fund shareholders to create one consolidated mutual fund platform with multi-share class pricing designed to meet the needs of the various investors doing business with the firm,” the press release said.

Under the terms of the merger, some JAD funds will be merged into existing JIF funds, which will have some differences in fund names from those currently in place in the JAD trust. In addition, 10 new funds will be created in the JIF trust for JAD funds that have no corresponding JIF strategy.

At the time of the merger, Janus said the JIF trust’s direct investment platform will be closed to new investors but will continue to be available to current direct investors and members of their immediate family and household.

For more information, go to www.janus.com.

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