Even if Connecticut trio aren’t fronting for a client, the rumors — and the tax implications of their $254 million jackpot — may expose them to unwelcome attention anyway. Three wealth managers in tony Greenwich are splitting the biggest lottery jackpot in Connecticut history. That’s the good news. Unfortunately, they handled their $254 million windfall […]
The National Association of Estate Planners & Councils (NAEPC) held its 48th Annual Conference at the San Antonio Marriot Rivercenter from November 16th through 18th. As a part of the conference, NAEPC held its annual Estate Planning Hall of Fame® induction ceremony. The award is given in recognition of distinguished service to the field of […]
Pershing’s open-architecture platform, named Trust Network, enables its broker/dealer and independent registered investment adviser (RIA) customers to offer their clients a range of personal trust services and solutions. “Investment professionals and advisers who serve sophisticated clients need the flexibility to offer the trust administration provider that can best support their business objectives and clients’ needs,”said Katie […]
Even before cancer diagnosis, the 84-year-old legend was looking to shield his legacy from taxes, not lawsuits stemming from one-time protege’s sex abuse scandal. Local attorneys warn that reporters that say otherwise “better have an apology ready.” Joe Paterno was already a household name in Pennsylvania before allegations of child sex abuse in his own […]
Lawyers warn that the Labor Department is working more closely with the SEC to investigate widespread abuses and conflicts of interest. Qualified plan providers react and are conducting fire drills and mock audits. The Department of Labor has grabbed the SEC’s regulatory baton and started hunting for “improper or undisclosed” compensation, forcing advisors to decide […]
Overland Park, KS (October 11, 2011) – National Advisors Trust, the nation’s largest independent, RIA-owned trust company, today announced that three new shareholders have joined the trust company to provide clients with amplified trust services. The new shareholders include: Halliday Financial headquartered in Glen Head, NY; Pinnacle Wealth Planning Services, Inc., headquartered in Mansfield, OH; […]
Now that markets have returned to pre-2008 benchmarks, alternative asset classes are gaining popularity as a way to demonstrate value and manage risk. One overnight best seller is low-cost ETFs. Many wealth managers now say they are just right for trusts. Even the most buttoned-down trust portfolios are moving beyond blue-chip stocks and Treasury bonds […]
Look for lower unemployment, higher taxes and more debt. Despite the predictions of skeptics investors will regain confidence and markets will hit historic highs in 2010.
Time magazine made Federal Reserve Chairman Ben Bernanke its person of the year. The economy appears to be taking shape will likely be one of the most remarkable transitions from rags to riches in American history. Bernanke’s achievement was not necessarily what he didn’t do but more of what he did do to subdue an economy that could have collapsed in a way that the markets melted before the Great Depression.
This month marks the Trust Advisor Blog’s sixth month of publishing. It marks an achievement that required me to wear two hats — relationship manager by day and writer by night.
Although I would have preferred to have basked on the beach in the Bahamas this weekend, instead I dug my heels into delicate research to come up with these predictions of what; in my opinion will likely take place next year.
1. Expect unemployment to go down to 8 percent. As investor confidence continues to take hold, markets again will rise. This will inspire confidence in businesses to rehire and expand. This will in turn have a significant effect on employment.
2. The U.S. dollar will likely improve as short-term rates climb next year.
3. Interest rates will begin to rise in the second quarter of 2010 as inflation fears begin to mount and the economy continues to grow.
4. Corporate profits will increase to the upside beginning in the first quarter of 2010.
5. Small caps’ stocks which have been badly beaten in the downturn will rise dramatically making them one of the best performing equity vehicles.
6. Financial regulation will attempt to begin in Congress but the mission and purpose will have been forgotten as most politicians have short-term memories for what took place in the last quarter of 2008.
7. Anti–Madoff/anti-Stanford measures will take a backseat position as new issues emerge.
8. ETFs will become the hottest financial vehicle for investors. Innovators will package commodities, real estate and every conceivable asset class into an ETF so investors can consume them and reunite markets.
9. Apple Computer will announce a large size iPhone – the size of a small book. It will have screen features like a like the iPhone and through its apps will serve as a full computer. It will be called the iTablet or something like that. iPhone applications will appear on its screen. It will have Bose style sound system give sound enthusiasts a a walking, boom-box entertainment system. iPhone’s competitors such as Palm and Blackberry will copy the concept. Amazon.com will likely partner with one of these firms to make its Kindle on-line books available for instant access.
Why the comeback? A demand for lower expenses and more flexibility make qualified plans a major market
Collective investment funds, sometimes referred to as common trust funds, are not a new investment structure in the U.S. market. In fact, they have been available in the market for decades, to both defined-benefit and defined-contribution plans.
In the past, however, collective investment funds had also always been perceived as a bank product, and mutual fund companies were, for several decades, the growth leaders in the retirement plan arena. As 401(k) plans began to grow quickly in the 1980s, they found mutual funds an easy-to-use product, further slowing the development of collective investment funds.
Now, collective investment funds are making a very strong comeback for several reasons.
The primary factor in the last few years has been faster computers and better communication networks. These have allowed collective investment funds to be priced and traded on a daily basis.
Collective investment funds are remarkably similar to the mutual funds many of us are familiar with in the marketplace; they can invest in equities, fixed income, ETFs and even mutual funds.
Additionally, they can create custom asset allocation portfolios to meet the needs of a particular client. This feature has been extensively used by pension plans that desire the collective investment funds to be utilized as a life-cycle fund.
While many pension plan sponsors had shied away from including collective investment funds in their employees’ plans in the past, there are now more than 800 collective investment funds available, and that number keeps growing.
Many of the collective investment funds available today are near mirror images of mutual funds that asset managers already offer to pension plans.
In fact, some of the stable value funds already available are so identical to the mutual funds they mirror that many plan participants are unaware of the transition from mutual fund to collective investment trust.
There are a few key differences, however, which make them remarkably well suited for use within 401(k) retirement plans.
There are several factors which make CIFs different from mutual funds. Nearly all of them are helping drive more and more business toward the collective