The Markets May 24, 2010

Investors Most Prize Rate of Return on Statements

DALBAR, Inc. has released its national study of what investors expect to see in a statement from financial services companies.
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DALBAR’s Investor Statement Preferences study found the overall rate of return in the account is the single most important statement item, with more than half of respondents ranking it as critically important. Total fees charged was the second highest rated item investors want on their statements, according to a press release.

More than half of investors consider statement messages from their financial adviser to be important. Investors also say that sections that summarize statement details are also critical to their understanding.

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“Declining trust in financial services has pushed up demand for fee disclosure,” said Kathleen Whalen, Managing Director at DALBAR,. “It’s clear that investors want to know what benefits they receive in the form of returns and what these benefits are costing them.”

DALBAR said the results of the study contribute to the weighting of its statement rating criteria, which are used to evaluate individual investment and benefit statements. 

A copy of the study can be purchased at www.dalbar.com, or  by contacting Brooke Halloran at 617-624-7273 or bhalloran@dalbar.com.

Products May 24, 2010

CUNA Redesigns Target-Date Fund Series

CUNA Mutual Group has teamed up with Madison Asset Management to reengineer its Ultra Series Target Retirement Date Funds to support an outcome-based retirement planning model.
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The redesigned funds use a more conservative approach in the 10 years prior to retirement and after retirement with a focus on capital preservation.

“The funds’ glidepath uses a unique ‘risk management zone,’ which gives portfolio managers the ability to adjust the equity exposure based on current market valuations and economic conditions.” said Tom Eckert, vice president of Retirement Plan Services, in a press release.  

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According to the company, the Ultra Series Target Date Funds are now being used in more than 2,000 401(k) plans offered by CUNA Mutual and feature Target 2020, 2030 and 2040 versions. The funds are managed by Madison Asset Management. 

CUNA Mutual Group, a manager of credit union retirement plans, manages 4,000 credit union retirement plans representing $6 billion in assets under administration.

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