401(k) Participant Transfers Still Favoring Fixed Income
However, Aon Hewitt data shows new contributions continue to favor stocks, with 65.7% of employee contributions investing in equities—a slight increase from 65.6% in August.
September was another light month
of trading for 401(k) investors with 0.14% of total balances traded in
the month and one day of above-normal trading activity, according to the
Aon Hewitt 401(k) Index.
GIC/stable value funds gained $121
million in participant assets, while money market funds gained $65
million and bond funds gained $27 million. Meanwhile, company stock
funds lost $99 million in 401(k) participant assets; large U.S. equity
funds lost $88 million; and target-date funds lost $24 million.
However,
new contributions continue to favor stocks, with 65.7% of employee
contributions investing in equities—a slight increase from 65.6% in
August. After combining contributions, trades, and market activity in
participants’ accounts, the percentage in equities remained unchanged
from August at 64.9%.
After conducting extensive research and talking with
clients, Fidelity Investments learned that many advisers are seeking additional
training and coaching to meet a variety of challenges. In response, Fidelity Clearing
& Custody Solutions (FCCS) partnered with Peak Advisor Alliance to launch
the eLarning Exchange program.
Available exclusively to advisers who clear or custody with Fidelity, the program will
combine a customized version of Peak’s online resource portal, one-on-one
coaching, and peer learning opportunities to help advisers meet their goals. Online
training will cover a variety of topics including client segmentation,
referrals and recruiting.
“From ongoing business concentration to evolving investor
preferences, this is a transformational time in our industry, and the continuous
changes are keeping advisers up at night,” says David Canter, executive vice
president of practice management and consulting at FCCS. “One of the best ways
to tackle exponential change is to step back and learn new skills. Our goal
with this collaboration is to reach a wide range of advisers and offer an
opportunity for in-depth training that will help them embrace change, measurably
impact growth and take their firm to the next level.”
The
program will be available to clients of FCCS beginning January 2017. Clients can reach out to their relationship managers to receive information
about how to register. Starting in January, advisers who clear or custody with
Fidelity can enroll with Peak to access the program’s online portal for
complimentary on-demand lessons at any time.
Peak’s
one-on-one coaching and the peer learning opportunities will be rolled out
nationally following Fidelity’s regional Inside Track events throughout 2017,
where pre-conference workshops will be dedicated to the program allowing advisers
to sign-up on site.
Following
the Inside Track workshops, groups of approximately 10 to 15 advisers will attend
ongoing Advisor Exchange Calls with their enrolled peers and have unlimited
access to Peak’s online platform and program lessons. They will also receive
three complimentary one-on-one coaching opportunities with a Peak Advisor
Alliance executive business coach.
The
Fidelity relationship managers who work one-on-one with Fidelity advisers will
also participate in the program to help advisers on a variety of topics
including running a business, succession planning, recruiting and retaining
talent, income and equity, driving growth and more.
eLearning
Exchange is sponsored by Fidelity Investments. The FCCS is the division of
Fidelity Investments that provides clearing and custody to registered
investment advisers (RIAs), retirement recordkeepers, broker-dealer firms,
banks and insurance companies. Peak Advisor Alliance is a financial adviser coaching
and consulting program serving nearly 1,100 advisery firms across the country