Products September 8, 2014

Redtail, Morningstar Partner on CRM Tech

Redtail Technology and Morningstar have partnered to integrate proprietary investment research and portfolio analytics within new client relationship management (CRM) software tools for advisers.
Reported by

Redtail and Morningstar say the new CRM software solution is set to launch in the fourth quarter of 2014. They hope the software tools will help advisers streamline and simplify practice management and client servicing.

“Throughout the development process, we’ve looked carefully at feature requests and suggestions from our users that have gathered the most support,” explains Brian McLaughlin, CEO of Redtail Technology. “We’re implementing hundreds of those ideas in this release, while also improving overall performance, design and ease of use.”

Want the latest retirement plan adviser news and insights? Sign up for PLANADVISER newsletters.

Tricia Rothschild, head of global adviser solutions for Morningstar, says the goal is also to provide advisers with a more integrated, holistic workflow. “As advisers increasingly use Redtail, we’re pleased to offer easier access to investment and portfolio-level information where and when they need it,” she adds.

In addition to integrated Morningstar reports, analytics and data, the Redtail CRM user interface offers enhancements to key features, including:

  • improved calendar functionality, both at the contact and database user level;
  • more precise and user-friendly advanced searches;
  • expanded note formatting and commenting capabilities;
  • a new automations engine that helps advisers manage daily activities and processes more efficiently; and
  • a new projects feature with a revamped workflow management system.

Redtail CRM subscribers who upgrade to the new version will be able to conduct research and stay abreast of timely market information from Morningstar, according to the firms. Without leaving the Redtail platform, subscribers may view the Morningstar Report, an on-screen research report for mutual funds, stocks, closed-end funds and exchange-traded funds. Advisers can also view various Morningstar market-monitoring tools on the Redtail dashboard, including the Morningstar Market Barometer, Sector Delta graphics, fair value estimate chart and Morningstar news content.

In addition, Redtail CRM subscribers who also have a license for Morningstar Advisor Workstation or Morningstar Office will gain access to other reports and research, directly from the Redtail platform. These advisers will be able to view client portfolios and generate Morningstar portfolio-level reports—including Portfolio Snapshot, Portfolio X-Ray and Stock Intersection. Advisers also will be able to generate investment detail reports for funds, stocks, exchange-traded funds and closed-end funds.

If they choose to subscribe to the capability, Morningstar Advisor Workstation and Morningstar Office users will also have access to analyst research and ratings within the Morningstar Report directly from the Redtail platform. Later this year, Morningstar Office users will also have access to client portfolio data within the Redtail CRM.

“The primary goal of all of our integration efforts is to make those tasks that advisers have to perform on a day-to-day basis easier and more streamlined,” McLaughlin says. “This is only the first part of our coordinated integration effort, which will deepen significantly over time.”

Redtail says subscribers may switch to its new CRM or continue to use the previous version. Redtail will continue to support the previous CRM and keep all existing training information available, but will base new training materials on the updated user interface. New users who sign up for a free trial will instantly have access to the new interface. Redtail will offer multiple weekly webinars to educate users about the new features available and has an expanded training staff available to provide help and support throughout the transition.

More information on the Redtail CRM solutions is at www.redtailtechnology.com.

Compliance September 5, 2014

Berkshire Hathaway Sued Over Retirement Plan Design Changes

Participants of retirement plans sponsored by Acme Building Brands Inc., a subsidiary of Berkshire Hathaway Inc., have sued their employer over changes to benefits.
Reported by

Two present employees and one former employee filed the suit in the U.S. District Court for the Northern District of Texas challenging the firms’ decision to freeze accruals to Acme’s defined benefit plan and reduce the company matching contribution rate in its 401(k) plan. The plaintiffs contend that the acquisition agreement by which Berkshire Hathaway acquired Acme approximately 14 years ago requires Acme to permit participants to accrue additional defined benefits indefinitely, at the same rate that benefits were being accrued at the time of the acquisition, and to make additional 401(k) matches forever, at the same rate as the matches at the time of the acquisition.

The complaint seeks restitution for participants because “Berkshire Hathaway’s agreement is either an amendment to the retirement plans, in which case the employees are entitled under [the Employee Retirement Income Security Act] to the enforcement of the retirement plans in accordance with their terms, or, in the alternative, it is a contract for the benefit of the employees, and its breach entitles the employees to damages.”

Want the latest retirement plan adviser news and insights? Sign up for PLANADVISER newsletters.

In a press release related to the suit, Berkshire Hathaway says it “strongly believes this interpretation of the acquisition agreement is clearly wrong and expects that its actions will be upheld by the courts.” The press release quotes an extended section of the acquisition agreement at issue in the suit:

“For purposes of all employee benefit plans (as defined in Section 3(3) of ERISA) and other employment agreements, arrangements and policies of Parent under which an employee’s benefit depends, in whole or in part, on length of service, credit will be given to current employees of the Company for service with the Company prior to the Effective Time, provided that such crediting of service does not result in duplication of benefits. Parent shall, and shall cause the Company to, honor in accordance with their terms all employee benefit plans (as defined in Section 3(3) of ERISA) and other employment, consulting, benefit, compensation or severance agreements, arrangements and policies of the Company (collectively, the “Company Plans”); provided, however, that Parent or the Company may amend, modify or terminate any individual Company Plans in accordance with the terms of such Plans and applicable law (including obtaining the consent of the other parties to and beneficiaries of such Company Plans to the extent required thereunder); provided, further, that notwithstanding the foregoing proviso, Parent will not cause the Company to (i) reduce any benefits to employees pursuant to such Plans for a period of 12 months following the Effective Time, (ii) reduce any benefit accruals to employees pursuant to any such Plans that are defined benefit pension plans, or (iii) reduce the employer contribution pursuant to any such Plans that are defined contribution pension plans.

“The Company shall amend its Supplemental Executive Retirement Plans to provide that, effective as of the Closing, participants who have been ( or would have been) employed by the Company for 10 years or more as of the later of the Closing Date of December 31, 2000, shall be entitled to benefits under such plan upon termination of employment, if terminated within 12 months after the Effective Time, as if such participant was 55 years old at the date of such termination, subject to the other provisions of such plan.”

The complaint in Hunter v. Berkshire Hathaway is here.

«