Taxable-bond funds led the way with inflows of $29.6
billion, while U.S. stock funds saw outflows of $8.3 billion. Investors
continue to seek out higher-risk segments of the bond market. The multisector
bond, bank loan, emerging-markets bond, nontraditional bond, world bond and
high-yield bond categories each saw inflows of more than $1
billion.
PIMCO topped all firms with inflows of $8.1 billion in
October, led by PIMCO Total Return Bond, which took in $2.4 billion. DoubleLine
Total Return took in $1.9 billion during the month and $17.9 billion
year-to-date, making it the most popular mutual fund so far this
year.
According to results from Prudential’s study, “The LGBT Financial
Experience,” lesbian, gay, bisexual and transgender (LGBT) individuals have
unique financial concerns that advisers may be overlooking. Almost nine
out of 10 LGBT survey respondents said a financial professional has never
approached them about their specific LGBT financial-planning needs, despite
only 25% of LGBT respondents saying their needs are similar to those of the
population at large.
The study highlighted one of the key drivers of concern
about retirement—the legal status of LGBT relationships, which can
significantly impact financial planning. LGBT respondents reported being very
concerned about the lack of Social Security or pension survivor benefits for
same-sex couples, as well as legislation that negatively affects LGBT rights.
Tax treatment, benefit inequality and inheritance rules for same-sex couples
were also big concerns for LGBT respondents.
Overall, almost half of LGBT respondents said they are not confident
they will have enough savings throughout their lives, or be able to maintain
their standard of living in retirement.
Among LGBT study participants, Baby Boomers are most
concerned about retirement. Many were affected by the recession, losing assets
in the stock market and real estate close to their retirement age. In addition,
the HIV epidemic has left many survivors taking early retirement through disability,
leaving them economically challenged for the duration of their lives. Twenty-three
percent of LGBT Baby Boomers report being retired, or living on income from
disability and Social Security.
“We need to educate the financial services industry [about
LGBT financial-planning needs], as well as the community,” Patricia Brzozowski,
diversity director, Women’s Strategy and Military Veterans Strategy at Prudential,
said during the LGBT Financial Experience event.
Michele Meyer-Shipp, vice president and chief diversity
officer at Prudential, said advisers must identify upfront the needs of clients
by asking specific questions such as, “What unique financial needs or concerns
do you have?”
Before advisers can market to the LGBT community, they must
educate themselves on these specific financial-planning needs, panelists
emphasized.
The LGBT Financial Experience 2012–2013 Prudential Research
Study was conducted by Community Marketing Inc. of San Francisco, which
surveyed a diverse group of 1,401 LGBT Americans ages 25 to 68 from urban,
suburban and rural communities throughout the 50 states in August 2012.