Deals & People January 27, 2010

Goldman to Depart from Fidelity

Charles Goldman, who joined Fidelity from Charles Schwab about a year ago, plans to leave the company at the end of March, according to news reports.
Reported by

As president of Institutional Platforms for Fidelity Institutional Products Group, Goldman is in charge of Institutional Wealth Services, Fidelity’s registered investment advisory (RIA) custodian unit; National Financial, Fidelity’s brokerage platform; and Family Office Services.

Goldman is leaving to “pursue other opportunities,” a Fidelity spokesman told news outlets. There are no immediate plans to replace him.

In November 2008, Goldman joined from Fidelity’s rival Charles Schwab, where he was executive vice president and head of Schwab Institutional (see “Former Schwab Exec to Lead Fidelity Institutional Platform Business”).


Data & Research January 27, 2010

Participants More ‘Into’ Retirement Savings

MassMutual's Retirement Services Division released data indicating that participants in its retirement plans are taking a calmer, longer-term approach to their retirement saving plans.
Reported by

Participant deferrals in Q4 2009 were up an average of 0.54% across all age groups compared to Q3 2009, according to MassMutual’s data of participants in plans it administers. The percentage of participants who maintained or increased their savings rate reached its highest level for the year in Q4 2009 at 96%, with 2.7% of participants actually increasing their savings rate.

The number of participants who decreased their deferral rate reached the lowest levels in Q3 (1.25%) and Q4 (1.28%), respectively.

According to a press release, while overall traffic on The Journey, MassMutual’s participant Web site, declined 13% in Q4 versus Q3 2009, traffic on the company’s participant education Web site, RetireSmart Academy, increased by more than 52% for the same period—indicating that participants are checking their account balances less frequently but are focused on educational activities. RetireSmart Academy also noted its highest-ever Asset Allocation Seminar attendance since the site launched early in 2009.

MassMutual’s average participant balance was up 29.1% in 2009 versus 2008 and participants are displaying increasing confidence in equities, the company said. As of year-end 2009, participant assets in bonds and stable value funds declined slightly, while assets in equities and asset allocation investments as a percentage of total assets grew to 62.3%, a high for the year.

In addition, investments in MassMutual’s asset allocation options increased from 18.6% at year-end 2008 to 21.6% at year-end 2009—a 16% increase and the highest level of assets in asset allocation funds as a percentage of total retirement assets at MassMutual to date.

According to MassMutual’s call center data, more participants called about loans than any other activity in the 4th quarter; however, the number of participant loans and hardship/in-service withdrawals declined by 6.7% and 6.2%, respectively, for the period.

«