Products April 11, 2019

Investment Product and Service Launches

Finadium builds database of securities lending mutual funds and ETFs; OneAmerica, Russell Investments managed accounts consider outside retirement assets; and MainStay moves target-date funds to other asset allocation funds.

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Art by Jackson Epstein

Art by Jackson Epstein

Finadium Builds Database of Securities Lending Mutual Funds and ETFs

Finadium has created a database of U.S. mutual funds and exchange-traded funds (ETFs) in securities lending that incorporates Securities and Exchange Commissions (SEC) filings and additional industry content. The database provides clients an analysis of market trends and funds using factors such as strategy, benchmark, fund complex, fee splits, cash collateral fees and more.

The database will be available to Finadium clients as part of the standard research subscription, with no additional cost, and supports fund boards and management with corporate governance, program management, regulatory compliance and cost analysis, including dynamics between fund management fees and securities lending revenues.

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According to Finadium, a large market participant was signed as a cornerstone consulting client using the new database. On the buy-side, 18 leading fund managers will have online access as part of the Finadium research subscription.

Finadium will also use the database to drive ongoing research programs in securities finance, collateral and derivatives. Recent reports for mutual funds and ETFs in securities lending include:Large Institutional Investors on Securities Lending, Collateral and Repo; Next Steps for Agency Securities Lending, Or, Life After SFTR; and The US Repo Market at End of 2018.

OneAmerica, Russell Investments Managed Accounts Consider Outside Retirement Assets

OneAmerica and Russell Investments’ Personalized Retirement Accounts (PRA) solution has launched in support of defined contribution (DC) plan clients.

Through the targeted/personal online portal, PRA takes into consideration retirement accounts and assets that are outside of the employer’s retirement plan. PRA also features personalized investing approaches, a 3(38)-fiduciary component over the participant’s asset allocation and an outsourced investment solution.

According to OneAmerica, PRA advantages include embedded financial planning tools with advice to participants available on-demand.

“This is a great way for financial advisers to change the conversation from funds, fees and fiduciary to retirement readiness,” says Jay Breitenkamp, business development director, defined contribution, adviser and intermediary solutions, with Russell Investments. “We believe the Personalized Retirement Accounts solution is an upgrade to the retirement savings experience for the plan sponsor because we view it as a big ‘easy button’ for participants in that PRA does it for them when they may not have the time, interest or inclination to do it themselves.”

Each participant’s customized asset allocation is assessed quarterly and adjusted as needed based on progress toward his or her targeted retirement income goal.

MainStay Moves Target-Date Funds to Other Asset Allocation Funds

The Board of Trustees of MainStay Funds Trust has approved an agreement and plan of reorganization for a list of mutual funds, each a series of MainStay Funds Trust.

According to a filing with the Securities and Exchange Commission, the MainStay Retirement 2010 Fund and MainStay Retirement 2020 Fund will be acquired by the MainStay Conservative Allocation Fund. The MainStay Retirement 2030 Fund will be acquired by the MainStay Moderate Allocation Fund. The MainStay Retirement 2040 Fund and MainStay Retirement 2050 Fund will be acquired by the MainStay Moderate Growth Allocation Fund. The MainStay Retirement 2060 Fund will be acquired by the Retirement 2010 Fund; MainStay Retirement 2020 Fund.

According to the Board, after considering the recommendations of New York Life Investment Management LLC, it has concluded that the reorganization of each acquired fund with and into the corresponding acquiring fund is in the best interests of each fund’s shareholders. The reorganizations are expected to occur on or near June 14. Upon completion of the reorganization, pending investors will become shareholders of the corresponding acquiring fund, and will receive shares of the corresponding class of the acquiring fund equal in value to shares of the acquired fund. The reorganizations are expected to be tax-free for federal income tax purposes, and no commission, redemption fee or transaction fee will be charged as a result of the reorganizations, says the Board.

The Board asks that shareholders review the Information Statement/Prospectus, available here, which contains information about each acquiring fund, outlines the differences between each acquired fund and its corresponding acquiring fund, and provides details about the terms and conditions of the reorganizations.

Products April 11, 2019

Prudential Ramps Up Financial Wellness Offerings

Among other new capabilities, Prudential is expanding its financial wellness engagement solutions to include a financial coaching service, available via phone and one-way screen share.

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Prudential Financial Inc. introduced a range of new financial wellness solutions, which will be available via employers, to help individuals manage student loan debt, navigate job changes, access financial coaching and develop a personalized financial roadmap.

Prudential’s workplace financial wellness platform now includes LINK by Prudential, an interactive, personalized resource that enables people to identify their most important financial milestones and create a path toward achieving them. Already available to individuals through Prudential’s website, employees can use LINK to create an online personal profile and establish goals like building an emergency fund, insuring loved ones, saving for retirement or purchasing a home.

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LINK by Prudential leverages AI technology, allowing employees to integrate their existing Prudential retirement accounts and non-Prudential financial accounts to help round out their financial wellness roadmap. The LINK experience enables employees to be self-guided, work with an investment adviser via video chat or phone or meet in person with a financial professional from Prudential Advisors.

Prudential is also expanding its financial wellness engagement capabilities to include a financial coaching service, available via phone and one-way screen share. This coaching service is designed to help individuals learn about and adopt healthier financial behaviors, such as developing and sticking to a budget. The service is being piloted with selected employers.

The company is adding several new solutions that focus on specific life events and customer needs. In addition to the emergency savings and budgeting solutions it already offers, Prudential is launching Student Loan Assistance, an online resource that enables individuals to evaluate student loan consolidation and repayment options, and allows employers to make one-time or ongoing repayment contributions. Prudential is partnering with Vault, an Austin, Texas-based student loan technology benefits firm, to provide this service.

The company is also introducing PruPassages, a new program that helps people make more-informed decisions and maintain financial wellness during a job transition. As part of the service, a licensed financial professional from Prudential Advisors proactively reaches out to employees to offer guidance on their options to continue life insurance coverage. Employees can also receive a complimentary evaluation of their financial needs, priorities and goals.

In addition, Prudential is providing new beneficiary services for individuals who have just lost a loved one, with an easier claim process and resources to help guide their decision-making. These new capabilities include digital submission of claim forms, text and email status alerts, and online resources that help beneficiaries navigate tasks like planning a funeral and managing their loved one’s financial and social media accounts.

“Each person’s journey to financial wellness is deeply personal and constantly evolving,” says Judy Dougherty, who was recently appointed Prudential’s chief financial wellness officer. “We all face pivotal financial decisions throughout our lives, when the choices we make have the potential to either put us on a track toward financial health or derail us. This insight has guided our work on new solutions that are designed to be as in sync as possible with our customers’ lives. From digital experiences to coaching and in-person advice, our goal is to meet our customers where they are, and to help them to make informed decisions that establish and sustain their financial wellness over a lifetime.”

To learn more about Prudential’s Financial Wellness offerings for the workplace, visit www.prudential.com/employers/financial-wellness.

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