Data & Research September 23, 2010

FRC Predicts Double Digit Asset Growth for DC Plans

Assets in defined contribution plans will see double digit growth from 2011 to 2015, according to Financial Research Corporation's (FRC's) FRC Monitor — Strategic Planning issue.
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A press release said FRC projects assets in 529 plans, DC plans, ETF’s, IRA’s, sub-advised mutual funds, and target-date funds to achieve a compounded annual growth rate in the 10% to 20% range from 2011 through 2015.  In addition, mutual fund assets are forecast to attain a compounded annual growth rate of nearly 10% during the same period.   

FRC increased its projected growth rate for defined contribution plan assets as compared to last year’s projections. “While investors witnessed a significant drop in their retirement assets in one year, we did not see a mass exodus from the DC market, nor were there widespread redemptions,” noted Bob Hedges, FRC’s chairman, in the press release. Further, FRC believes innovative new investment products will sustain DC market participation levels, and asset levels will be buoyed by conversion of DB assets into DC plans.  

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FRC provides consolidated growth forecasts for various investment products and markets for the next full five-calendar-year period. FRC also presents analysis and commentary on topics of industry interest, including the potential impacts of 12b-1 fee reform and the Dodd-Frank Act, and likely areas of distribution channel growth.  

In addition, the Strategic Planning issue of FRC Monitor includes:  

  • Articles that provide the analysis behind the asset and sales outlooks, 
  • A review of the top product issues for asset managers in 2011, and  
  • An overview of the investment opportunity in emerging markets.
Products September 23, 2010

Fidelity to Incorporate Black Diamond Technology

Fidelity WealthCentral, a hub for registered investment advisers (RIAs) to use third-party solutions, has partnered with Black Diamond for use of its BlueSky system.
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Black Diamond’s BlueSky portfolio management and reporting platform, a Web-based product, allows advisers to outsource and automate daily reconciliation of their clients’ investment information, including aggregation of assets including those not held within Fidelity. They can also run customized reports on demand or view data on Black Diamond’s online platform.

Through WealthCentral, advisers can use Black Diamond tools for a range of tasks, including ad hoc and batch client reporting, composite reporting and maintenance, client billing, multiple levels of account/asset aggregation, customized target/asset allocation models, cost basis tracking, tax lot entry, and a private-labeled customer Web portal that includes vault capabilities for their clients’ performance reports.  It also provides RIA firms the ability to customize their asset classifications, homepage and reports.

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“Working strategically with proven firms such as Black Diamond to establish deep integration differentiates WealthCentral from other platforms and reinforces our commitment to helping advisers achieve greater efficiencies and accelerate their growth,” said Michael R. Durbin, president, Fidelity Institutional Wealth Services.

The agreement with Black Diamond is the latest addition to WealthCentral’s collection of third-party providers, which already include Oracle, Emerging Information Systems, Inc. (EISI), Advent Software, Inc. and Northfield Information Services, Inc (see “Fidelity’s Web-Based Tool Attracting RIAs“).  Fidelity expects to integrate additional third-party solutions in the future.

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