The Markets August 10, 2017

DC Participants Mostly Stay Put in Investments in July

When they did trade, most inflows went to non-U.S. equities, according to Alight Solutions.
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Since 1997, trading for defined contribution (DC) plan investors was fairly leveled or heightened, but was at its lowest in April 2012. In July, just 0.11% of balances were traded throughout the month—the lowest level in since then and the second lowest since the Alight Solutions (formerly Aon Hewitt) 401(k) Index began.

According to Alight Solutions, only 0.012% of balances were traded each day in July, with only one day of above normal trading. There were only three days of above normal trading in 2017 year-to-date (YTD). Most inflows went to non-U.S. funds, including 46% to international funds, with an index dollar value of $99 million, and 15% went to emerging market funds, amounting to $33 million in index dollar value.

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The majority of trading outflows were primarily concentrated on company stock, with 52% of outflows and $111 million in index dollar value; stable value funds (11% outflow and $25 million); and small U.S. equity funds (11% and $24 million).

Investment portfolios were rather balanced, with 67.4% invested in equities, a jump from the 67.0% at the end of June, while 67.3% of new contributions were invested in equities.

Target-date funds (TDFs), large U.S. equity funds, and stable value funds earned spots as the asset classes with the largest percentages of total balances, at 25% for TDFs, 24% for equity funds and 11% for stable value funds. The asset classes with the most contributions in July included TDFs (44%), large U.S. equity funds (20%) and international funds (8%).

While trading activity among DC plan participants took a plunge, Alight says capital markets gathered positive results, especially with strong returns in large U.S. equity funds and international funds.

Products August 10, 2017

Orion Teams With Quick! For Automated Client Onboarding Tool

With new features, Orion clients will have access to customizable online forms. 

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Orion Advisor Services is collaborating with form-automation provider Quik! to provide advisers with a seamless client onboarding experience.

Quik! will allow Orion clients to import electronic or paper files such as custodial and custom forms into a Web browser making them fillable, secure, signable and interactive. Any field on the form can be customized with additional information. Once the form is completed, advisers have the ability to download it as an editable PDF to print, or to share via DocuSign for an e-signature.

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Orion provides access to client data directly through its Application Program Interface (API) and instantly populates custodial and custom forms, including a firm’s own investment advisory agreements.

“Orion’s partnership with Quik! helps advisers process new accounts in an automated fashion, helping advisers stay on par with robo-offerings,” said Orion’s manager of integration partnerships Jeff Kliewer. “Orion is dedicated to helping advisers create a more efficient and effective practice, and auto-fill forms help advisers decrease the time spent on paperwork, allowing them to spend more time on their clients.”

Quik! is integrated with all major custodians, and their forms are available in the Quik! library. Advisers can also upload their own custom forms.   

Orion clients can utilize Quik! directly on Orion Connect. It is also integrated with Salesforce FSC. For pricing and more information, email integrations@orionadvisor.com. 

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