This week, Transamerica and Cetera Retirement Plan Specialists announced a new partnership for a pooled plan solution, while Pacific Life and Franklin Templeton tackle lifetime income with their latest collaboration. Additionally, Vanguard launches a new new municipal bond index, and Insight Investment appoints a lead for their insurance portfolio management team.
Transamerica and Cetera release new group retirement plan solution
Transamerica is partnering with Cetera Financial Group on a new pooled plan solution.
Under the arrangement, Transamerica will serve as the plan’s recordkeeper. Cetera Retirement Plan Specialists, a Cetera-owned third-party administrator, will serve as the plan’s 402(a) and 3(16) fiduciaries, and will also manage the plan’s day-to-day administrative duties. The Cetera Advantage(k) GPS is available through Cetera-affiliated advisors and is primarily geared toward small and mid-sized businesses.
“We have seen an increase in employers offering workplace retirement plans, expanding coverage for millions of Americans,” says Adeline Wong, head of Retirement Plan Strategy and Solutions at Cetera Financial Group. “However, for some small business owners, the administrative hurdles to set up and maintain a 401(k) plan, and the investment expertise required to select and maintain an appropriate, high-quality investment menu, have been a challenge. Our new solution, in collaboration with Transamerica, aims to reduce the administrative tasks and liability for the business owners so they can focus on what matters most – running their business.”
“Transamerica is proud to partner with Cetera Financial Group, a retirement industry leader in supporting plan sponsors and empowering advisors to serve their clients with excellence,” added Phil Eckman, president of Workplace Solutions at Transamerica. “Together with Cetera, we share a vision of making it possible for more companies to offer retirement plans to their employees. With the Cetera Advantage(k) GPS, we are demonstrating our shared commitment to finding innovative solutions that meet the needs of Cetera’s business owner clients and their employees.”
Pacific Life and Franklin Templeton announce collaboration on lifetime income
Pacific Life and Franklin Templeton are collaborating to offer lifetime income solutions.
Citing the recent passage of the SECURE Act 2.0 and continued focus on supportive regulatory legislation, the companies said that plan sponsors have shown an increased interest in offering lifetime income solutions to plan participants who seek personalization in their retirement planning.
“A one-size-fits-all approach to retirement planning is falling short of the needs of most plan participants,” said Michael Oler, assistant vice president and head of Pacific Life’s defined contribution lifetime income. “This collaboration will address the need for personalization and customization in retirement savings and help plan sponsors help their participants achieve better retirement outcomes.”
“Crafting next-generation solutions that meet the unique needs of participants is core to our values and allows us to make meaningful progress toward providing financial well-being to all Americans,” said Yaqub Ahmed, head of U.S. Retirement, Insurance, & 529 at Franklin Templeton.
Vanguard releases new short-term tax-exempt bond ETF
Vanguard launched this week its Vanguard Short-Term Tax-Exempt Bond ETF. The new municipal bond index ETF is managed by Vanguard Fixed Income Group and is designed for tax-sensitive investors with a short-term time horizon and low interest rate risk tolerance.
“Vanguard Short-Term Tax-Exempt Bond ETF is built to optimize tax efficiency for investors seeking to allocate to the shorter end of the municipal bond market,” said Sara Devereux, global head of Vanguard Fixed Income Group. “The new ETF complements our broad fixed income lineup and provides clients with another avenue to tap our municipal bond team’s talent and capabilities.”
Vanguard Short-Term Tax-Exempt Bond ETF predominantly invests in short-term investment grade municipal bonds and will track the S&P 0-7 Year National AMT-Free Municipal Bond Index. The ETF has an expense ratio of 0.07%, compared to 0.56% for the average short-term bond fund.
Insight Investment hires insurance portfolio management head
Insight Investment has appointed Kerry O’Brien as head of insurance portfolio management for North America.
At Insight, she is responsible for the North America Insurance business with regards to overall strategy, daily portfolio management and ultimate leadership of the Insurance team.
“Kerry has extensive experience as an insurance portfolio manager and we are delighted to welcome her to Insight,” said David Leduc, CEO North America at Insight. “The U.S. Insurance market is a key area of focus for Insight and the team is well equipped to deliver on the priorities of our insurance clients. Kerry is a proven leader with a history of developing insurance strategies and leading teams, and her appointment significantly bolsters our ability to help insurance clients achieve their investment goals.”
O’Brien brings 26 years of insurance portfolio management expertise to Insight and joins from AIG Investments, where she held several senior portfolio management and leadership roles including global head of portfolio management. Prior to AIG, she worked at Swiss Re Asset Management as a fixed income portfolio manager and Munich Re Asset Management as a credit analyst.
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