Data & Research May 15, 2017

Eighty Percent of People Seek Advice When Doing a Rollover

Of this group, 58% obtain professional financial advice.
Reported by

Eighty percent of defined contribution (DC) participants speak with someone before rolling assets from their 401(k) plan to an individual retirement account (IRA), the LIMRA Secure Retirement Institute found in a survey.

“It is clear that the decision to move their assets is an important decision and, as such, most people look to another person for guidance or validation of their decision,” says Matthew Drinkwater, assistant vice president at the Institute. Fifty-eight percent of these people rely on a professional adviser when making this decision, Drinkwater notes.

The main reasons why people do the rollovers are: to gain more control over their assets, to seek out investment options that could generate higher returns, and to consolidate assets.

Whether or not a participant keeps their assets in the plan or rolls it over to an IRA depends on the strength of their relationship with the plan provider, according to the Institute. However, only 11% of participants say they have a strong relationship with the plan’s provider.

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Deals & People May 15, 2017

Newport to Acquire Evercore Fiduciary Business

Evercore is selling its institutional trust division to Newport Group
Reported by

Evercore and Newport Group have entered into an agreement by which Evercore will sell the institutional trust and independent fiduciary business of Evercore’s subsidiary Evercore Trust Company to Newport Group, a provider of retirement, insurance and consulting services.

Ralph Schlosstein, Evercore’s president and chief executive officer says, “This transaction is part of Evercore’s strategy to focus our efforts in the investment management sector in the U.S. on our wealth management and personal trust business. Evercore Trust Company’s institutional trust and independent fiduciary business provides exceptional independent advice and service to its clients, including many of the largest companies in the U.S. Newport Group will provide an ideal home to continue that outstanding client service.”

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Ciara Burnham, chief executive officer of Evercore Trust Company adds, “We have built the leading institutional trust and independent fiduciary business in the country over the past eight years by focusing on our clients and investing in our team. The business is poised to continue on this impressive trajectory.”

Subject to a client consent process, Newport Group will acquire the client agreements, employees and other assets of the institutional trust and independent fiduciary business. This division will be operated through Newport Trust Company.

The Evercore Trust Company charter will remain with Evercore and the entity will continue providing trust and custody services to Evercore Wealth Management. Terms of the transaction were not disclosed.

Completion of the transaction, which is subject to a client consent process and regulatory approval, is expected to occur at the end of the third quarter of 2017.

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