The Markets March 11, 2011

National Advisors Trust Reports Record Growth

National Advisors Trust's assets have gone from a low of $3.7 billion in March 2009, to $7.2 billion in March 2011. 
Reported by

The trust company reported to have added nearly $3.5 billion in assets during the 24-month period; a 95% growth rate. “Although the general market uptrend during that same period gave us a nice push, the majority of the growth came through new registered investment advisers (RIAs) and new accounts from existing RIAs,” said Ronald G. Ferguson, CEO of National Advisors Trust.

National Advisors says an increasing number of RIAs are starting to understand the importance of working with multi-generational clients; the use of trusts is a popular way to ensure RIAs these extended relationships. The trust company offers a private label trust program, the Trust Representative Office program, which allows RIAs to re-position their firm in their communities as being “trust savvy and trust focused.” During the last two years, National Advisors Trust has enrolled over 20 RIA firms in the Trust Representative Office program and has registered 26 private label brands in 17 states (see “National Advisors Trust Expands Turnkey Program”).

For more stories like this, sign up for the PLANADVISERdash daily newsletter.

The Markets March 11, 2011

401(k) March Toward Equities Continued in February

401(k) assets continued to shift toward equity investments in February, a trend that began last October, according to Aon Hewitt 401(k) Index data.
Reported by

An Aon Hewitt report said a total of $240 million shifted from fixed income funds into diversified equity investments (equity excluding company stock) during the month, representing 0.19% of total assets in the index. Nearly three-quarters of the days in February had equity oriented transfers.

Middle U.S. equity funds reaped the largest inflows during the month, totaling $92 million. Lifestyle funds also received a substantial $89 million with both asset classes having positive cash flow during each of the past six months. Large U.S. equity funds also netted $88 million in cash flows, continuing a positive trend for the fifth consecutive month.

Never miss a story — sign up for PLANADVISER newsletters to keep up on the latest retirement plan adviser news.

(Cont...)

Company Stock Outflows  

At the same time, company stock funds saw the largest outflows, with $159 million heading for the exits. Bond funds also had significant negative transfers of $128 million in February, which is the fourth month in a row with outflows.

Aon Hewitt said an average 0.04% of balances transferred on a net daily basis in February, similar to January, but slightly higher than the latter half of 2010 (0.03%). In addition, four days of the month had above normal levels of transfers, which is the largest number of above normal days since June 2010.

The February index also found that participants' total equity allocation was up to 61.9% at the end of February, from 61% at the end of January, due to both participant transfers and strong returns in the stock markets. Employee equity contributions also increased from 62.4% at the end of January to 63.1% at the end of February.

«