The human element will become a critical asset in the workplace of the future, said David Atkinson, People and Organization Director at PwC, during a recent #WebinarWednesday on employee wellness.
Atkinson moderated the event, which featured a panel of forward-thinking experts from Franklin Templeton Investments, Invesco, and MFS Investment Management. The session allowed attendees to explore the employee value proposition through a broad lens encompassing multifaceted wellness programs.
Going Holistic
As the “wellness-to-wellbeing” landscape grows, Sharon Anderson, VP of Benefits and HR Communications at Franklin Templeton Investments, said her organization has worked to meet that need through the launch of a new global campaign known as “Reach for Better.”
The campaign represents a belief in ambition over status quo, and an understanding that better outcomes in investing come to those with the ambition to seek them.
“To launch the new brand and help employees connect with what ‘better’ means to them, we partnered with our brand group and held some pop-up cafés,” Anderson said. “During those events, we intentionally introduced our new holistic wellbeing framework.”
This whole-person approach focuses on providing resources that support five critical aspects of wellbeing: Physical, financial, emotional, social, and community-focused.
Mark Leary, Chief Human Resources Officer at MFS Investment Management, said his organization’s wellness journey began years ago with a heavy focus on physical health. Today, the group leans more toward the whole-person approach referenced by Anderson.
“We focus on work-life balance, flexible work schedules, a ‘dress for the day’ dress code, and enhancing our family leave policy,” he said. “But we also put heavy emphasis on career development and growth — making people aware of the opportunity to broaden their skill set.”
Tara Patterson, Senior Human Resource Business Partner at Invesco, added that her organization focuses on purpose-based work intended to help employees “get more out of life.”
“When employees are not financially secure, it has tremendous impacts on their stress levels and wellbeing,” she said. “Even though we’re an asset management firm, a lot of employees were lacking confidence that they were doing the right things to secure their financial futures, so we put a lot of emphasis on on-site retirement workshops,” she said. “We also started offering access to our internal experts to provide employees with education.”
Driving Culture
“Culture is incredibly important,” Atkinson said. “We know it’s not something you can necessarily touch and feel, we know it’s not something you can manipulate — it’s something we can only hope to influence.”
Leary said a collaborative, familial culture is a differentiator for MFS. “We know that happy and engaged employees are more productive and willing to help out their coworkers,” he said. “We do an employee engagement survey every two years and build a comprehensive action planning around opportunities.”
Patterson said her group works to promote a culture of care. “We take care of employees, and employees take care of our clients and shareholders,” she said. “That translates to having a work environment where employees have the flexibility to harmonize work and life, feel secure in their finances, have the opportunity to connect and socialize, and give back to their communities.”
Chasing Engagement
Like Leary, Patterson said her organization uses employee engagement surveys to track the impact of its increased focus on employee and workforce quality of life. “What we’ve consistently seen in our engagement results is that overall, our employees feel motivated, enabled, and energized,” she said. “We also have very high retention rates.”
Anderson said Franklin Templeton also assesses employee engagement through surveys. “We also have a new listening strategy that includes asking more pointed questions of employees throughout the year in hopes to achieve greater connections,” she said.
Leary said his firm also studies promotion rates and mobility within the firm. “We want to determine if there is a healthy amount of people moving within the firm — it’s not just about bringing in new talent, thought that is also important.”
“There’s no better way to up your game than to listen to your clients,” said Mary Kralis Hoppe, CIMA, Senior Vice President, Field Sales, US Global Wealth Management at PIMCO Investments, during a panel on advisor feedback during the NICSA GMM last month. “Oftentimes, there are a lot of disconnects as to what we think they need and what they actually want.”
Hoppe moderated the panel, which featured leaders from Cerulli, ClaroAdvisors, FreedmanFinancial, and Merrill Lynch.The discussion included an overview of Cerulli’s recent research on these disconnects.
“One of our favorite tricks is to ask wholesalers what they think their advisor clients want to hear about, ask advisors what they actuallywant to hear about, and then point out the differences,” said Scott Smith, Director, Research and Analysis at Cerulli.
In a recent study, for example, Cerulli asked advisors what they value in terms of the services their wholesalers provide. “Advanced financial planning ideas” came in as the second most requested service. However, only 23% of wholesalers thought their advisor clients were interested in such ideas.
Marc Freedman,CEO, President, Owner, Freedman Financial, said every advisor needs to justify the fees they charge. “As advisors, we need to expand the scope of the services, the knowledge, and the breadth of the information that we provide to our clients.”
Marcie Behman, CIMA, Managing Director – Wealth Management, Private Wealth Advisor, Merrill Lynch, said her firm has evolved its platform over the years, not only to address how the markets have changed, but also to serve a client base that has gone from a typical net worth of $5 million to upward of $40 million.
“We have to focus on what we bring to them with that size of a portfolio,” Behman said. “They’re very focused on wealth transfer, wealth structure, and wealth protection.”
In terms of wealth transfer, Behman said one of the trends she’s observed is what she calls the “the great divide.”
“The younger generation is learning and embracing technology,” she said. “Their behaviors, their mindsets, and how they live their lives is radically different than the people who created the wealth — but they’re going to inherit all the wealth. So it’s a very interesting dynamic and we spend a lot of time talking to our clients about how to transfer this money.”
Ryan Belanger,Managing Principal and Founder, Claro Advisors, LLC, has set up a practice that leverages modern innovation to better serve tech-savvy customers. “My goal was for clients to be able to do everything from their phones — and we’ve accomplished that,” he said.
Because they’re immersed in a mobile-centric world, younger generations also expect lightning-fast communication, Belanger said. “From a service perspective, you have to step up your game and be available almost all the time, because clients who are used to communicating that quickly have higher expectations,” he said.
Because of the internet, younger generations also live in an age of information overload. Echoing Freedman’s earlier comments, Hoppe said this era presents an opportunity for advisors to prove their worth.
“We all have to work harder … whether we’re an asset management firm or a financial advisor, and one way to justify your fees is to make some sense of all the stimuli coming at people and be that interpreter,” she said
LGBT Great Launches 50For50 Pride Campaign
NICSA is delighted to announce that President and CEO Jim Fitzpatrick is featured in LGBT Great’s #50For50 Executives campaign. The campaign showcases 50 executive leaders across the asset management industry pioneering a diverse and inclusive environment. Jim is a proud ally of the LGBT community and has been recognized for his leadership in the launch of the Diversity Project North America. NICSA launched the Diversity Project in the fourth quarter of 2018 and the initiative is growing steadily among a broad range of firms within the industry. With hopes of deepening the D&I lens within the global asset management industry, we are pleased to see our industry leaders stand together in support of the LGBT+ community not just for #Pride but all year round.
About #50For50 Executives
LGBT Great’s #50for50 Executives campaign is part of Project 1000, which is a five-year drive to shine a light on 1000 LGBT+ and allies within the investment and savings industry. The purpose of the campaign is to showcase 50 executive leaders across our industry and to recognize the 50 years since the Stonewall movement began. The 50 executives represent a broad range of firms (at C-Suite and executive level) across the USA, EMEA and APAC.
About the Diversity Project North America
The mission of the Diversity Project North America is to promote a diverse and inclusive asset management industry with the right talent to deliver the best possible results for our clients, reflect the society we serve, and ensure long-term business sustainability. We aim to achieve diversity across all dimensions through collaborative leadership from executive business leaders pooling resources from industry participants around challenges we all face.
The Project spans the entire range of the industry: asset managers, fund complexes, asset servicers, broker dealers, asset owners and professional service firms. We share best practices, identify gaps in our industry, and initiate action to help solve or improve those inadequacies.
Those interested in learning more about the Diversity Project can visit nicsa.org/diversityproject.
Note: Although the observations contained in this work represent the best thoughts of the individuals comprising the NICSA panel, they do not necessarily reflect the views of NICSA or any of its member organizations. Matters addressed in this work may touch upon legal or regulatory matters, however nothing herein is intended to be or should be construed as legal advice. You should contact your own counsel in order to obtain legal advice regarding these or any other matters.
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#DiversityProject
#NicsaUpdates
Affluent millennials — defined as individuals born from 1982 to 2000 who have $100,000 or more in investible assets — are a nascent but quickly expanding population, and learning how to successfully engage them is of increasing importance to asset management firms.
According to a recent study by Cogent Reports, more than a third of U.S. adults qualify as affluent investors. Millennials represent a whopping 15% of the total affluent investor population and nearly 20% of affluent investors with $100,000 to $500,000 in investible assets.
“These aren’t your average millennials,” said Linda York, Senior Vice President, Cogent Reports, Market Strategies International, during a recent #WebinarWednesday event. “The average household income of the affluent millennials … is upward of $228,000 per year.”
York kicked off the educational session, which explored insights on working with the next-generation client, with a review of the Cogent Reports research.
“One of the striking findings from our report this past year was that affluent investors, and in particular, affluent millennials, are searching for new places, new ways to invest their money other than the traditional mutual funds, CDs, and bank accounts,” she said. “In fact, we found that the millennial population is driving up the use of ETFs, separately managed accounts (SMAs), hedge funds, and other alternatives.”
The report also revealed that affluent millennial investors receive more than three times the typical outreach volume every month compared to all other generations. They also received more touches than ready-to-act investors.
“Those are the folks that are in the shopping mindset – but even in comparison to them, the millennials are showing much more activity in terms of the number and types of touches that they’re reporting and receiving from financial services providers,” York said.
Millennial investors are also eager for information and most open to digital communication. “We’re seeing that these digital touchpoints can be a real win in both situations: for the financial providers as well as their potential customers.”
Matt Schiffman, Principal, Broadridge Data & Analytics, highlighted findings from his organization’s national research study on understanding the next generation of investors.
“We found that the vast majority of millennials, roughly 69% that we surveyed, do not have or use an advisor,” Schiffman said. “And the gender split overwhelmingly is dominated by men, underscoring the need to bring more women into the conversation.”
When compared to other generations, Schiffman said millennials display vast differences in their views and attitudes toward financial advice. In terms of asset growth, millennials stand in stark contrast to their parents. “For them, it appears to be less about the stock market and more about entrepreneurship and buying into a business,” he said. “They’re also way more confident in robo-advice than previous generations.”
Millennials also anticipate receiving an inheritance more than any other generation. “Millennials have a measurable level of optimism with regards to inheriting some money, but given numerous studies on boomer spending habits, in concert with rising retirement costs like healthcare, you have to wonder if this is a well-founded, solid plan,” Schiffman said.
“Recognizing and acting on these emerging millennial trends will position financial advisors and the industry to attract and keep this huge generation of clients at a critical time in their wealth creation and loyalty-building stage,” he concluded.
NICSA would like to thank Broadridge for sponsoring this webinar.
#DistributionandSales
#ProductandMarketing
NICSA will once again partner with ALFI for the Association of the Luxembourg Fund Industry’s Global Distribution Conference from September 25-26 , where 650+ senior representatives from the global distribution community will convene to learn about the latest developments on the global distribution landscape.
The conference will reflect on 30 years of UCITS, explore the future of enhanced cross border distribution, and take a deeper dive into distribution trends in LatAM and Asia, product trends around the globe, and the technology that is making distribution easier and more efficient.
While at the event, I’m eager to hear from the 50+ speakers and to network with the fund distributors responsbile for the global reach of investment funds. I am also looking forward to sharing the ALFI stage with Sally Wong, CEO of the Hong Kong Investment Funds Association (HKIFA), to provide important perspectives regarding our respective markets as they relate to the global distribution ecosystem.
Fee compression and shrinking shelf space are on the watch list for global asset managers facing an increasingly competitive environment. Data-inspired distribution models and strategic alignment of intermediary partnerships significantly contribute to the future vision of global financial product distribution. All the while, technology-inspired service models designed for the digital era are taking center stage. A global view of these matters is critical to growth for innovative industry leaders. I look forward to sharing NICSA’s views with conference attendees.
NICSA has enjoyed a long and successful partnership with ALFI and its members. Events such as ALFI’s Global Distribution Conference are critical to serving the global asset management community as it meets the challenges posed by increasing globalization. Collaborating on innovative approaches to global distribution is certainly in line with the NICSA mission. Serving the distribution community within the global asset management industry has been a focus for NICSA in recent months, and will continue into 2019. Our organizaton recently formed two new working committees: a Product & Distribution Committee and a Data Analytics Committee. We look forward to sharing the good works of these important groups with our own membership and the ALFI community in the coming months.
#Nicsa Updates
McLean, VA, February 13, 2017 —NICSA is pleased to announce the release of a new white paper to its member firms: Broker/Custodian Resignations, An Assessment of Firm Preparedness and Current Practices. The Department of Labor’s fiduciary rule—whether delayed, altered, or implemented in April 2017—has thrust an increased complexity onto client servicing and puts critical process development squarely at the forefront of 2017 business planning for the financial services industry.
A recent survey, developed by senior members of the Association’s Risk and Compliance and Transfer Agency Committees, was distributed among NICSA member firms to gauge current industry preparedness for a potential surge in dealer/custodian resignations and to open a dialogue about procedural development. The results of the survey informed this white paper and are presented with the intention of illuminating the issues, highlighting the implications, and helping those affected to make better-informed decisions using the perspectives of their industry peers.
#PressRelease
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#PR-Compliance
With 79 Million Boomers on the Brink of Retirement, Comprehensive Financial Planning is Critical
NICSA Joins Education, Advocacy and Industry Leaders in Sponsoring National Retirement Planning Week®
April 2, 2011, Boston, MA — Reports show that this year the first of 79 million Baby Boomers will turn 65, and that 4 million boomers will turn 60 each year for the next 18 years. For many, this milestone will present a much-needed opportunity to reassess their level of retirement preparedness. Insured Retirement Institute (IRI) research shows that nearly seven out of 10 Boomers within five years of retirement, and nearly eight out of 10 of Boomers outside of that window, stated that they are concerned about having adequate income during retirement.
Increase your retirement savings knowledge with the following resources:
Theresa Hamacher, CFA
Presentation from NICSA Annual Conference 2011
Courtesy of the NICSA Retirement Community
Improving After Tax Returns, Retirement Income, and Bequests Through Tax-Smart Household Management
Courtesy of LifeYield, Ernst & Young and the NICSA Retirement Committee
Deloitte Annual 401(k) Benchmarking Survery
Courtesy of Deloitte & Touche and the NICSA Retirement Committee
The Deficiencies of Target Date Funds
Bob Pozen
March 6, 2011
The Fund Industry: How Your Money is Managed
Authored by Robert Pozen, Chairman Emeritus of MFS Investment Management and a senior lecturer at Harvard Business School and Theresa Hamacher, President of NICSA and a former mutual fund chief investment officer, is the definitive guide to the worldwide fund industry.
The Fund Industry gives you an inside look at how mutual funds work - how they invest money, distribute their shares to the public, and provide service to fund shareholders - and why they have become the investment vehicle of choice for investors around the world. As Don Phillips, Managing Director of Morningstar, Inc., says in his Foreword, “There’s no other book that gives readers such a thorough overview of how the fund industry operates, its evolution, its regulation, and what makes it tick.”
The Fund Industry is available for purchase from NICSA at a significant discount. Click here to for more information.
Official Website of National Retirement Savings Week
Visit the official NRSW website for additional resources
Contact:
Michele Liston
Deputy Executive Director, NICSA
508-485-1500
McLean, VA (November 15, 2012)—NICSA, leading provider of independent education and networking forums to professionals in the global investment management community, announces the keynote speaker lineup for the 31st NICSA Annual Conference to take place in Miami on February 10-13, 2013.
“The keynote speakers are a critical component of the NICSA Annual Conference, and we feel that this lineup gives attendees a tremendous opportunity for new information on critical topics that are important to all of us - both personally and professionally...” says the 2013 NICSA Annual Conference Committee Co-Chairs Karan McClimans, Vice President, TRowe Price, and Jim Nolan, Managing Director, Fund Services, Citi.
This year’s featured keynote speaker schedule includes:
In addition to these prominent speakers, the 2013 NICSA Annual Conference will feature more than a dozen breakout and roundtable sessions headed by the NICSA members, sponsors, and partners helping connect investment industry professionals to best practices.
About NICSA
NICSA is the leading provider of independent education and networking forums to professionals in the global investment management community. It is a network of nearly 10,000 business professionals from within the investment management industry and the firms that support the industry, including mutual fund complexes, investment management companies, custodian banks, transfer agents and independent providers of specialized products and services. The Association consists of corporate member firms with offices operating in major financial centers around the world. Membership fees are surprisingly small, yet the benefits of membership are anything but. NICSA offers the most comprehensive range of services in the industry, allowing members to learn, network and share best practices locally, nationally and globally. Visit nicsa.org
McLean, VA, March 2, 2018—NICSA announces the launch of its 2018 Strategic Leadership Forum, where over 350+ executives from across the global asset management spectrum—including asset management firms, broker dealers, and professional service providers—converged in Miami, Florida to share their insights on evolving business models within the financial industry.
Distribution and product trends take center stage at the event’s general sessions, while innovation and analytics will be a significant focus during the interactive breakout sessions. The full agenda, including an overview of the 40+ speakers, can be found on the Association’s website. The conference will feature keynote presentations by the first female U.S. Navy F-14 Tomcat fighter pilot, Carey Lohrenz, as well as Morningstar CEO Kunal Kapoor and Putnam Investments President and CEO, Bob Reynolds. NICSA’s annual Face the Membership Roundtable will feature CEOs from Thornburg Investment Management, MFS Investment Management, and Northern Trust.
#PressRelease
#DistributionandSales
#ProductandMarketing
#PR-ProductDistribution
Contact:
Alyssa Gagen
Director of Social Media and Marketing, NICSA
508-485-1500
Boston, MA (September 23, 2013) -–NICSA announced the appointment of a new vice chair, George Batejan, Global Head of Technology & Operations, Janus Capital Group, and four new members to its 2013-2014 Board of Directors roster, including: Peter Poulin, Principal, Deloitte; Bob Wallace, Managing Director, Citi; Dan Houlihan, Head of Global Fund Services, North America, Northern Trust Company, and Darren Walsh, Chief Technology and Operations Officer, OppenheimerFunds.
Elected at the annual NICSA General Membership Meeting on September 20, 2013 in Boston, board members selections were made among senior-level representatives from member asset management and broker-dealer firms.
“I am excited to welcome new board members who bring a fresh, new perspective to the NICSA community,” said Theresa Hamacher, President, NICSA. “This group has the knowledge and experience that NICSA needs to maintain its position as a thought-leader within the global investment management industry while providing strategic vision and guidance for association members.”
Fred Naddaff, Managing Director, SunGard will continue to serve as the Chairman of the NICSA Board of Directors while Barry Benjamin, Partner, PwC, will continue his role as Treasurer.
If you are interested in learning more about NICSA, visit: nicsa.org for more information.
About NICSA
NICSA is the leading provider of independent education and networking forums to professionals in the global investment management community. It is a network of nearly 10,000 business professionals from within the investment management industry and the firms that support the industry, including mutual fund complexes, investment management companies, custodian banks, transfer agents and independent providers of specialized products and services. The Association consists of corporate member firms with offices operating in major financial centers around the world. Membership fees are surprisingly small, yet the benefits of membership are anything but. NICSA offers the most comprehensive range of services in the industry, allowing members to learn, network and share best practices locally, nationally and globally. Visit nicsa.org
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