When it comes to financial advice, Americans believe the
earlier the better, according to the 2016 TIAA Advice Matters Survey.
Fifty-nine percent say that a first meeting with an adviser should take place
before the age of 35—and that figure jumps to 80% for Gen Y respondents. Among those who have received advice, 77%
wish they had met with an adviser sooner.
For those who have not worked with an adviser, 35% think they don’t have enough
money to invest. Forty-nine percent think they need more than $50,000 to
qualify to work with an adviser.
Nonetheless, 71% are interested in receiving advice. Forty-five
percent of Gen Y have received advice, but 82% are interested. Thirty
percent of those earning less than $50,000 a year have received advice, but 61%
are interested in doing so.
Eighty-five percent say they would find advice tailored to
their age group helpful, and 73% of women say the same about advice tailored
for—and delivered by—women. However, only 40% of women have received advice,
compared to 56% of men.
“You don’t need a minimum amount of money to receive professional financial
advice,” says Kathie Andrade, CEO of TIAA’s Retail Financial Services business.
“An array of effective online tools and resources gives everyone access to
personal financial support. And finding a financial adviser early in your adult
years, perhaps through your parents or employer, can help put you on a path for
financial success.”
NEXT: What motivates people to seek out
an adviser
Twenty-nine percent said they would consider working with an
adviser if they had a clear understanding of how they would be charged for
advice. Twenty-four percent would welcome a recommendation from friends or
family, 22% would like to receive assurance that the adviser is qualified to
help them, and 20% would appreciate the adviser pledge that they will not
try to sell them any particular product or investment.
The survey also examined actions by people in different income levels. Only 30%
of people with an annual income below $50,000 have worked with an adviser, but
this is true for 49% of people earning more than $100,000 a year. However,
those in the lower income group are more interested in creating a budget (34%
versus 21%). Twenty-nine percent of people in all income levels are interested
in creating monthly income that they cannot outlive.
Seventy-five percent of people said they would consider taking a job at a
company that offers financial advice at no cost; that figure jumps to 87% of
Gen Y.
Although nearly half (48%) of those who have worked with
a financial adviser chose one outside of their workplace, that trend is
shifting. Sixty-four percent of Baby Boomers who have received advice worked
with a non-employer-affiliated adviser, but that drops to just 27% of Gen Y
respondents.
“Gen Y really wants financial advice, and companies are
doing their best to attract top young talent,” Andrade says. “So, it makes
sense for employers to add advice to their benefits. Pairing a well-designed
retirement plan with strong education and support can go a long way in helping
companies attract well-qualified employees and set them on the path to success.”
KRC Research conducted the online survey for TIAA among 1,000 adults in August.
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Conning Launches New Suite of Risk Management Software; Advisor Partners Releases Global High Quality Dividend Yield Strategy; Jackson Square Partners Offering Mutual Funds; and more.
Conning
Launches New Suite of Risk Management Software
Conning, a global investment management
firm and financial-risk modeling software company, has released Version 6.6 of
its suite of risk management software products. The offering includes the
ADVISE Enterprise Risk Modeler, FIRM Portfolio Analyzer, and GEMS Economic
Scenario Generator (ESG).
Version
6.6 includes a new model of sovereign contagion risk, meaning that the
propagation of crises between different bond issuers is realistically reflected
in the ESG, the firm explains. The new version also expands on Conning’s “User
Views” functionality with additional models and capabilities being added to the
Real-World Recalibration Tool. The new suite also sees the introduction of
calibration for corporate credit spreads by rating class, municipal bond
spreads and sovereign yields with credit risk, as well as functionality for
directly setting the correlation between some key variables. Clients will continue
to have the capability to calibrate to tenor-specific targets and a wide choice
of levels, moments, and statistics across multiple time horizons.
“The
need for risk managers to confidently and reliably calibrate our software’s
increasingly sophisticated economic models has been broadening and shows no
sign of easing up,” says Dr. Hal Pedersen, a director of Risk Solutions for
Conning. “With insurers coping with risks that we have not seen before, the
release of Version 6.6 addresses a critical area of risk management modeling.”
All of
the new features in Version 6.6 are accessible in an automated setting via the
Conning command-line interface.
“We
always view modelling, and calibration in particular, through the prism of
automation, and look to advance on these fronts simultaneously,” says Dan
MacKenzie, managing director of Software Product Management for Conning. “Risk
management modeling continues to grow in both in scope and frequency, making it
increasingly important to have applications that can be updated and processed
reliably and efficiently.”
For
more information about Conning’s suite of risk management software products,
visit its website here.
NEXT: Advisor Partners Releases Global
High Quality Dividend Yield Strategy
Advisor Partners Releases Global
High Quality Dividend Yield Strategy
Advisor
Partners has launched a new investment strategy. The Global High Quality
Dividend Yield (GHQDY) is a diversified, risk-controlled strategy designed to target a
yield premium of 75 to 100 basis points relative to yields on diversified global
equity indices.
"In
a world awash with negative yields, many advisers asked us to develop a global
equity strategy designed to deliver solid, current income that also has a high
probability of retaining purchasing power over time," says CEO Vikas
Oswal. "GHQDY is our solution for a risk controlled global dividend
strategy."
The GHQDY strategy will be
offered with optional (opportunistic) tax-loss harvesting, Advisor Partners
says. The strategy aims at portfolios that are diversified across developed
markets and across GICS sectors. Currently, yields on global equity indices are
approximately 50 basis points higher than on corresponding U.S. indices, the
firm says.
"This
is yet another example of AP designing customized solutions that address
advisers' requests for portfolios that will enable them to achieve the best
possible outcomes for their investor clients," says Oswal.
Founded
in 2001, Advisor Partners is an investment management firm providing investment
solutions to financial advisers, family offices and financial
institutions.
NEXT: Jackson Square Partners
Offering Mutual Funds
Jackson Square Partners Offering Mutual Funds
Jackson Square Partners now
will offer mutual funds with a focus on institutional investors. The Jackson
Square Partners Funds include Jackson Square Large-Cap Growth, Global Growth,
SMID-Cap Growth, Select 20 Growth and All-Cap Growth funds.
“The vast majority of our
clients are institutions and these funds provide institutional clients and
intermediaries with more flexibility and a broader menu of options to access
Jackson Square’s strategies,” explains chief investment officer Jeff Van Harte.
“The Funds’ daily net asset value and lower investment minimums than a
traditional separate account make the strategies accessible to a wider range of
institutional clients.”
These funds have been launched
in collaboration with Delaware Investments, which has reorganized three of its
funds previously sub-advised by Jackson Square. As a result, certain
shares of Jackson Square Large-Cap Growth, Focus SMID-Cap Growth and Select 20
Funds have track records more than a decade long and $350 million in combined
assets, the firm says.
The funds are available in a Series
Trust structure and much of their administrative support has been outsourced to
U.S. Bancorp Fund Services with Jackson Square maintaining core relationship management
responsibilities, the firm says. Jackson Square anticipates that the funds may
be available on major brokerage platforms such as Fidelity, Pershing and
Schwab.
The following funds and share classes
are effective as of September 19, 2016.
Jackson Square Large-Cap
Growth Fund:
Class Investor (JSPJX)
Class Institutional (JSPIX)
Class IS (DPLGX)
Jackson Square Global
Growth Fund
Class Institutional (JSPTX)
Class IS (JSPUX)
Jackson Square SMID-Cap
Growth Fund
Class Investor (JSMVX)
Class Institutional (JSMTX)
Class IS (DCGTX)
Jackson Square Select 20
Fund Class
Class IS (DPCEX)
Jackson Square All-Cap
Growth Fund:
Class IS (JSSSX)
Jackson Square is an
independent, privately-owned investment manager specializing in long-only,
growth-oriented public equity strategies and managing approximately $23.1
billion in discretionary assets under management as of June 30, 2016.
To learn more about The Jackson
Square Partners Funds, click here.
NEXT: Russel Investments Releases New QDIA
Russel Investments Releases New QDIA
Russell Investments and
Envestnet Retirement Solutions have announced their plans to distribute a new
qualified default investment alternative (QDIA) option for defined contribution
(DC) plan participants.
The “managed QDIA” will automatically create a
customized asset allocation for each participant by drawing on personal
information from a recordkeeper or HR system. Participants will be able to
further customize their personal “glide path” by entering preferences online.
Plan sponsors and advisers will be able to incorporate this solution into their
DC plans in the first half of 2017.
Powered by
the ERS QuILTS patented participant advice engine, the plan aims to develop
customized solutions for DC plans and individual
participants. It is designed to be cost-efficient and
easy to use like traditional target-date funds, the company says.
The solution automatically captures a
participant’s personal information from a DC plan sponsor’s recordkeeper and
human resources system without requiring a participant’s direct involvement or
feedback. Personal information—age, gender, salary, current account holdings
and contribution rate—is combined with Russell Investments’ asset allocation
model to construct a portfolio customized to each individual participant.
The solution is designed to
provide plan sponsors co-fiduciary support through Russell Investments’ asset
allocation model advice and an adviser’s guidance regarding plan investments.
“Individual differences in
participants’ savings and market experiences can have a meaningful impact on targeted
retirement income replacement goals. This offers an alternative to target-date
funds that focuses primarily on one simple data point—a participant’s age,”
says Andrew Scherer, director of defined contribution at Russell Investments.
“We believe this solution can help empower the adviser and the consultant to
fulfill their fiduciary duties in areas such as plan design and investment
selection. It provides a strong managed QDIAoption that addresses the
industry’s heightened focus on ensuring fiduciary standards are met.”
NEXT: Polen Capital Management to
Advise Trust Funds
Polen Capital Management to
Advise Trust Funds
Polen
Capital Management, a global equity management boutique, announced that it will
act as adviser to the Polen Global Growth Collective Investment Trust and the
Polen Focus Growth Collective Investment Trust funds. Both are established by
SEI Trust Company.
The new
Polen Global Growth and Polen Focus Growth CITs will consist of large cap
equity securities invested with Polen Capital’s investment philosophy and
process, which has a 27-year track record.
“We
have seen a growing client interest for our investment strategies within a CIT
vehicle—particularly in our Global Growth strategy,” says Stan C. Moss, CEO
of Polen Capital. “Similar to our investment philosophy of only investing in
high-quality companies, from a business perspective we only partner with best of
breed service providers. With SEI we found an industry-leading trustee and
administrative services provider.”
Aiming
to increase its retirement market presence and respond to clients’ needs, the
Polen Capital CITs are the first CIT funds the firm advises.
“Polen
Capital’s expertise with its Global Growth and Focus Growth strategies coupled
with SEI’s scalable, flexible infrastructure is an appealing combination for
retirement investors,” says John Alshefski, senior vice president and managing director of SEI’s Investment Manager Services division. “SEI’s integrated
capabilities in CITs helps enable investment managers to preserve and grow
assets.”
SEI is
a global provider of investment processing, investment management, and
investment operations solutions.