Corporate Roundup: Fiserv and ADP Partnership, NAGDCA Offers Governmental DC Plans Guide
This week, Fiserv and ADP partner on a new small business solution, NAGDCA announces the availability of a governmental DC plan guide, T. Rowe Price launches a target date portfolio with Canada Life, and more.
Fiserv and ADP Partner on Small Business Solution
Fiserv, Inc., a global provider of payments and financial services technology, and ADP, a global technology company providing human capital management (HCM) solutions, are partnering to bring together Fiserv’s small business solutions with payroll and HR solution RUN Powered by ADP.
Through this partnership, ADP and Fiserv will offer U.S.-based small businesses access to a solution combining RUN Powered by ADP and Fiserv’s Clover platform. In addition, CashFlow Central, an integrated accounts payables and receivables management platform, will be available to RUN and Clover clients.
“This strategic partnership with ADP furthers our commitment to building out an integrated solution that meets the unique needs of today’s small business owner,” said Frank Bisignano, chairman, president and chief executive officer of Fiserv. “The addition of ADP’s payroll services technically integrated into Clover will make it easier than ever for small businesses to manage the flow of money in and out of their business, whether they are selling to customers, paying bills, or managing payroll.”
“The powerful combination of two trusted, industry leaders advances our ability to serve the millions of small businesses that drive the U.S economy,” said Maria Black, president and CEO of ADP. “Helping businesses thrive has been our mission since day one, and we’re working to simplify the way small businesses manage their workforce through exceptional payroll and HR solutions backed by great service. We remain dedicated to supporting, celebrating, and investing in small businesses, helping them to further their impact in their communities.”
Fiserv and ADP will start working together this quarter with services to be rolled out in early 2025.
NAGDCA Offers Government DC Plans Guide
The National Association of Government Defined Contribution Administrators announced the availability of its new “Guide to Governmental Defined Contribution Plans.”
The new guide is designed to help trustees, board members, plan sponsors, and administrators understand the characteristics of and interplay between these various public sector DC plans. It contains a breakdown of public sector DC plans, links to NAGDCA resources, a list of FAQs, and a glossary of commonly used terms.
“A key NAGDCA focus is providing our members and others involved in the construction and management of public sector DC plan offerings with the tools they need to optimize retirement savings outcomes for state and local government employees,” said Matt Petersen, NAGDCA Executive Director. “As such, we’re pleased to offer this new guide, which updates and enhances NAGDCA’s “Intro to Public Sector DC Plans” introduced in 2020.”
T. Rowe Price Launches Target Date Series Aimed at Canadian Investors
T. Rowe Price has launched its first target date portfolios for Canadians. The T. Rowe Price Retirement Date Series is built for Canadians, while applying a similar design approach and asset allocation principles as the firm’s target date offerings globally.
The T. Rowe Price Retirement Date Series is now available through Canada Life, an insurance, wealth management, and benefits provider. Canada Life has added the series to its Group Retirement Services core platform.
The T. Rowe Price Retirement Date Series is designed to manage longevity risk and sustain purchasing power through retirement by:
- Balancing the need for strong long-term returns against appropriate levels of volatility throughout the lifecycle of the Canadian plan member.
- Featuring a glide path that extends for 30 years past the individual’s targeted retirement date, also known as a “through retirement” glide path.
- Blending T. Rowe Price’s active management and security selection, with passive investments, which allows for a reduced fee profile.
- Factoring in distinctive market dynamics and Canadian demographic data, including life expectancy, savings rates, and lifetime growth in earnings.
The series is managed by T. Rowe Price’s target date portfolio management team, including Wyatt Lee, head of Target Date Strategies, Kim DeDominicis, and Andrew Jacobs van Merlen. Lee has 27 years of investment expertise, DeDominicis has 25 years, and Jacobs van Merlen has 21 years.
Wise Rhino Group Announces Client Acquisition
Wise Rhino Group, a mergers and acquisition (M&A) advisory practice representing wealth and retirement advisory and third-party administration (TPA) firms, announced that its’ client, Karel-Gordon & Associates has been acquired by Strongpoint Partners.
Founded in 1975, Karel-Gordon & Associates is a pension consulting, actuarial, and administration firm based in Deerfield, Illinois. Karel-Gordon & Associates works in partnership with financial advisors, tax professionals, and attorneys to best serve their clients.
“The partnership of these two Chicago-based firms further bolsters Strongpoint’s actuarial talent and expertise in defined benefit plans while providing the Karel-Gordon team access to expanded services offerings such as payroll and HR solutions,” _shares Peter Campagna, Managing Partner at WRG. “We could not be more excited to have played a hand in the joining of these two incredible teams.”
“With this being the third TPA firm that Wise Rhino Group has represented in 2024; we are very optimistic for what lays ahead for the industry in coming years,” adds WRG Partner Scott Erskine. “With an influx of new capital partners, advancements in technology and automation, as well as service quality improvements driven by scale, we are encouraged by a fresh wave of innovating firms looking for talented leaders and teams like the ones at Karel-Gordon.”
Modera Acquires Bay Point Wealth
Modera Wealth Management, LLC, a fee-only comprehensive financial planning firm with $12.5 billion in assets under management (AUM), has announced its acquisition of Bay Point Wealth, a registered investment adviser (RIA) firm with offices in Annapolis and Stevensville, Maryland, and $467 million in AUM.
For over 25 years, Bay Point Wealth has provided personalized, objective advice, fee-only financial planning, and investment management services to high-net-worth individuals and families. The firm currently has eight employees, including four advisors who specialize in working with successful families, business owners, corporate executives, medical professionals, surviving spouses, and individuals with special needs.
“As the founder of Bay Point, I unequivocally believe that transitioning our ownership to Modera Wealth is a picture-perfect move. This decision is rooted in our shared values and a mutual commitment to excellence. I am confident that this new chapter will enhance our capabilities and offer our talented team even greater opportunities for development and career advancement. This is a truly transformative step for us, promising continued innovation and improved services for our clients,” said Bay Point Wealth founder and principal Bill Hufnell.
“Bay Point’s leaders share a commitment to a client-first, fiduciary approach that mirrors ours. We are excited to welcome the team to Modera and look forward to collaborating on ways to support the team and add value to their client relationships,” stated Modera CEO Tom Orecchio.
Vanguard Launches Active Municipal ETFs
Vanguard has launched the Vanguard Core Tax-Exempt Bond ETF (VCRM) and Vanguard Short Duration Tax-Exempt Bond ETF (VSDM), two active municipal ETFs managed by Vanguard Fixed Income Group.
“These new ETFs combine our top-tier active fixed income capabilities with our expert municipal bond team, all within an actively managed ETF wrapper that’s becoming an essential for many investors,” said Sara Devereux, global head of Vanguard Fixed Income Group. “We envision these ETFs playing an integral role in investors’ portfolios; with Vanguard Core Tax-Exempt sitting centrally as part of their tax-exempt allocation and Vanguard Short Duration Tax-Exempt leveraging our expert active capabilities, helping investors to get the most out of their short-term allocation.”
Vanguard Core Tax-Exempt Bond ETF offers broad exposure to high-quality municipal bonds with an expense ratio of just 0.12% compared with the average expense ratio for competing funds of 0.36%.
Vanguard Short Duration Tax-Exempt Bond ETF is designed for investors seeking tax-exempt municipal income at the short end of the yield curve. Investors in the ETF can expect a portfolio of short-duration and primarily high-quality, investment-grade municipal bonds that generates tax-exempt income with lower interest rate sensitivity. It has an estimated expense ratio of 0.12%, compared with the average of 0.27%1 for competing funds.
Vanguard Core Tax-Exempt Bond ETF and Vanguard Short Duration Tax-Exempt Bond ETF provide an active counterpart to Vanguard’s existing suite of index municipal ETFs and build on Vanguard’s active fixed income ETFs alongside the recently launched Vanguard Core Bond ETF (VCRB) and Vanguard Core-Plus Bond ETF (VPLS).
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