Asset managers tweak their value proposition: Cerulli
'Asset managers are dropping fees on asset management products to near zero, instead choosing to charge for asset allocation,' says Cerulli analyst Bing Waldert.
Ascensus to buy INTAC, a third-party administrator
Ascensus, based in Dresher, PA, supports more than 60,000 retirement plans, more than four million 529 education savings accounts, and a growing number of ABLE savings accounts.
Misperception in UK: Auto-enrollment means adequacy
Employer contributions are viewed as the key to retirement savings adequacy in Europe; auto-enrolling participants by itself won't get them there, IPE.com reports.
Over half of today’s retirees have pensions
In May, the Federal Reserve published a Report on Economic Well-Being of U.S. Households in 2017. We offer a summary and a link to the document.
Honorable Mention
Late-breaking items from OneAmerica, Principal Financial, Northwestern Mutual, Lincoln Financial, and Orion Advisor Services.
Americans have $100 trillion in wealth and $15.7 trillion in debt
Credit card balances represented about 6.6% of disposable income in the first quarter, down from almost 9% a decade ago.
Global Atlantic annuities to be available on Envestment platform
Global Atlantic’s fixed-rate and fixed index annuities will be available to Envestnet users at banks, broker-dealers, independent insurance agencies and RIAs.
Merrill Lynch may bring back commissions on sales to IRA clients
The firm has launched a 60-day review of its individual retirement account policies and will consider keeping, relaxing or rolling them back, a source told Reuters.
Outflows from global equity funds continues: TrimTabs
Despite the harsh rhetoric about China from President Trump, China-focused equity funds are on track for their sixteenth consecutive monthly inflow.
The Journal of Retirement’s spring issue
The issue contains articles by retirement gurus David Blanchett, Alicia Munnell, and John Turner, plus a review by Sandy Mackenzie of Jack Bogle's latest book.
Honorable Mention
Brief or late-breaking items from Nationwide, the Center for Retirement Research at Boston College, Prudential Financial, Charles Schwab and Milliman.
Vanguard pulls S&P500 fund from its own 401(k)
'The current problem with the Index 500 fund is that over 25% of the fund is in technology stocks,' a former Vanguard employee told the local press.
Fed raises benchmark rate to range of 1.75% – 2.0%
The last time the rate topped 2% was in late summer 2008, when the economy was contracting and the Fed was cutting rates toward zero.
Athene issues new fixed indexed annuity
The new contract, called Agility, offers an annual deferral bonus of 175% of the increase in the account value, and income that steps up by the percentage earned each...
Honorable Mention
A.M. Best sees private equity firms dominating life/annuity M&A; Merrill Lynch penalized for deceiving customers on RMBS sales; MetLife and Brighthouse may release up to $116 million to owners...
Securian creates ‘open MEP’
'Open multiple employer plans' are defined contribution plans that many unrelated small firms can join. Legislation to ease their formation is pending in Congress.
Variable annuities see $18 billion net outflow in 1Q2018
The recent increase in market interest rates, plus the lapse of the DoL Fiduciary Rule, have raised expectations that VA sales will rise, however, according to Morningstar.
Life/annuity industry news
Athene in $19 billion reinsurance deal with Voya; Allianz Life survey finds interest in protection products; TIAA rebrands its banking units; Global Atlantic in $9 billion reinsurance deal.
Total annuity sales to improve through 2019: LIMRA SRI
With interest rates expected to rise over the next two years, LIMRA SRI forecasts sales of fixed rate deferred annuities to increase by 15-20% in 2018 and by 20-25%...
In fund sales, Vanguard leads but BlackRock’s gaining
Vanguard had $12.3 bn in inflows in April. But BlackRock’s iShares eclipsed that figure with about $17 bn. Vanguard’s year-to-date growth continues to slow year over year.
