Products August 27, 2012

Manning & Napier Launches Two Strategic Income Funds

Two new offerings from Manning & Napier offer income through investments in equities, fixed income and real estate.
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The Strategic Income Conservative Series will invest 15% to 45% of its portfolio in equities, and the more aggressive Strategic Income Moderate Series will invest 44% to 75% of its portfolio in equities. Both aim to beat traditional income-producing securities.

“In today’s market environment, yields on traditional ‘safe,’ income-producing securities like U.S. Treasuries are very low, and negative in some cases on an inflation-adjusted basis,” said Patrick Cunningham, chief executive of Manning & Napier. “Not only does this provide challenges for generating income, but it also exposes investors to potential capital risk. We have developed a strategy that provides greater income potential and helps to mitigate risk through an active security selection and asset-allocation approach.”

The funds will invest in four proprietary funds at Manning & Napier designed to provide investors with both income and appreciation. The Strategic Income funds will be offered with a retail S Class share with an investment minimum of $2,000 and an institutional I Class share with an investment minimum of $1 million.

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Data & Research August 27, 2012

Employers Adding Features to Boost Participation, Savings

A growing number of employers are providing their employees with 401(k) plan features to help drive positive plan participation and encourage savings.
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According to data released by Schwab Retirement Plan Services, 73% of employers provided a 401(k) matching contribution in 2011, up from 68% in 2010. Eighty-three percent of employers made 401(k) advice available to plan participants, up from 80% in 2010, and compared with just 42% in 2005.

Forty-two percent of employers automatically enrolled employees into their 401(k) plan in 2011, an increase from 39% in 2010, and up dramatically from just 5% in 2005. This figure was even higher among larger companies. At companies with more than 2,500 employees in the plan, 58% used automatic enrollment. 

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Forty percent of employers using automatic enrollment also used automatic savings increases, up from 36% in 2010, and 14% in 2006.

“We are encouraged that more employers are recognizing the powerful impact these plan features can have on driving positive outcomes for their employees, particularly the impact of advice,” said Steve Anderson, senior vice president of Schwab Retirement Plan Services.

Recent Schwab data shows that employees who use independent professional advice services inside their 401(k) plan have tended to save twice as much, were better diversified and stuck to their long-term plan, even in the most volatile market environments. Advice data is based on plans serviced by Schwab Retirement Plan Services, Inc. that offer independent advice to their participants through GuidedChoice Asset Management Inc. (GuidedChoice), which is not affiliated with or an agent of Charles Schwab & Co., Inc., Schwab Retirement Plan Services Inc., or any of their affiliates.

 

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