Compliance July 10, 2013

American Funds Offers Fiduciary Services

Both 3(21) and 3(28) fiduciary capabilities from Wilshire are offered on American Funds’ recordkeeping platform.
Reported by

American Funds decided to offer fiduciary services to plan sponsors but is not profiting from the service; plans pay a minimal fee to Wilshire Associates directly. For plans with fewer than 25 participants using the 3(21) service or the 3(28) service, the annual charge is $300 and $600, respectively. For plans with 26 to 300 participants, the annual charge is $500 and $700, respectively, and for plans that have 301 to 500 participants, the annual charge is $600 and $1,000.

American Funds launched the service last summer, “in response to advisers’ request for third-party services,” said Bill Anderson, senior vice president and director of retirement business at the firm.

“We did a search for an independent third-party fiduciary, examining their core values and methodology,” Anderson said, “and ultimately started the program with Wilshire Associates. We receive no compensation from plan sponsors or Wilshire but are offering this as a convenience to our plan sponsor and plan adviser clients. We think it represents a value.”

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Asked what the reaction among clients has been, Anderson says it has been very positive. “Many advisers will provide this service themselves, but given the heightened sensitivity to fiduciary obligations, many plan sponsors and plan advisers have been interested in this,” he said.

As of July 9, 212 plans are making use of American Funds’ independent fiduciary offering from Wilshire. Of these, the majority, 136, have elected 3(21) services, with the remainder, 76, electing 3(38) services.

Deals & People July 9, 2013

Hartford Investment Management Announces Hires

Hartford Investment Management Company (HIMCO) hired two institutional sales representatives and a consultant relations head.
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Matthew Addesa and Michael Mondo joined the firm as institutional sales representatives covering the Central and East regions, respectively, and Christopher Miller is the firm’s new head of consultant relations.

Addesa was previously with Columbia Management for six years in institutional sales, most recently as an eastern region institutional sales representative. Prior to that, he was a manager of corporate planning at Bank of America/FleetBoston Financial, and began his career in financial services at State Street Corporation. Addesa earned a B.S. in business administration from Western Michigan University and holds the Series 3 license and the Series 7 and 63 FINRA registrations (held through Hartford Equity Sales Company, Inc.). He is based at HIMCO’s headquarters in Hartford, Connecticut.

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Mondo has been an institutional asset management sales professional since 1998. He was previously with Invesco Advisers LLC, where he was a senior director, Institutional Sales and Client Service, covering the Northeast. Prior to that, he held institutional sales roles with J.P. Morgan Asset Management, Evergreen Investment Management and State Street Corporation. Mondo began his career in financial services in 1986 as a financial consultant with Shearson Lehman Brothers. He earned his B.B.A. in marketing from Adelphi University and his M.B.A. in finance from St. John’s University. He also holds the Series 3 license and the Series 7 and 63 FINRA registrations (held through Hartford Equity Sales Company, Inc.). He is based in Boston, Massachusetts.

Miller was previously managing director and global head of consultant coverage for Credit Suisse Asset Management, where he was responsible for developing relationships with leading consulting firms around the world. With more than 30 years of experience, he has headed consultant relations and sales efforts with leading asset managers and banks including Citadel, Bear Stearns, Morgan Stanley Capital International/BARRA, Flemings and Bankers Trust. He received a B.A. in mathematics and economics from Hobart College, and holds the Series 7 and 63 FINRA registrations (held through Hartford Equity Sales Company, Inc.). He is also based in Hartford, Connecticut.

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