From SEI:
“For more than 30 years, we’ve been helping advisors manage uncertainty by connecting investment solutions to investor goals.
How clients wish to achieve those goals is always different, which is why we continue to provide you with greater flexibility and investment choice.”
Click Here to read the full SEI Article
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From Envestnet PMC: Tanner Howard, CFA, Senior Investment Analyst
“Summary
Rationale
On September 28, 2023, John Hancock Investment Management (JHIM) announced their intentions to replace Redwood Investments (Redwood) as the sole sub-advisor for the John Hancock Small Cap Growth mutual fund. At that time, PMC removed the JHIM mutual fund from our Select List and began assessing the impact for Redwood and their Small Cap Growth strategy as a whole.
With the sub-advisory change going into effect last week, PMC now has a clear picture of the change’s impact on Redwood’s AUM. Strategy AUM was just under $600 million prior to the change, but with roughly $400 million exiting via the transition, strategy assets are now roughly $175 million.
PMC feels it is prudent to place the strategy on our Watch List due to the decline in AUM. It introduces concerns around the longevity of the strategy as a going concern (particularly if the trajectory of flows remains negative) and team morale. Redwood has reaffirmed their commitment to supporting the strategy (which was once the firm’s flagship) and PMC has yet to see any evidence of declining team morale, but will continue to monitor the situation over the coming months.”
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Maple Capital Market Commentary: Read the Full Article
As of 10-31-2023
The Month In Review
Financial market performance in October was negative across the board. The Energy sector led the decline in the S&P 500 Index, while the Utilities sector posted a gain. The relative outperformance of a defensive sector like Utilities may reflect a resurgence of recession fears even though third quarter growth surprised to the upside. Bond yields also rose, more so for longer-dated bonds, which led to negative total return for the second month in a row.
The initial read of third quarter GDP was 4.9% annualized, propelled by strong consumer spending, government spending, and inventories. The residential investment category also posted a gain, its first increase since the first quarter of 2021.
Government bond yields rose in October as elevated supply from a growing deficit combined with only limited progress on inflation led to higher yields. Yields on longer term bonds rose more than short term bonds. Risk spreads on non-government bonds also moved wider, further reflecting the dismal sentiment.
Click here to read the full Maple Capital Monthly Commentary
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Click Here to Watch the Webinar
The ESI Social Media Compliance Webinar was hosted on October 18th, 2023 by Jenna Simanskas, AVP Marketing & Communications, and Dan Hart, Compliance Advisor. The webinar reviewed the ESI Social Media Policy’s main points panelists then responded to questions. Learn about efficient practices to comply with the ESI policy as you connect with your audience.
If you have questions about ESI Social Media Compliance, please contact adreview@nationallife.com.
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Fidelity Institutional Important Notice: 23-350
Starting with tax year 2023, National Financial Services (NFS) will no longer generate IRS Form 5498s for Premiere Select IRA1 customers who do not meet any of the following conditions:
The suppression of these forms is part of an ongoing effort by NFS to reduce our reliance on paper and become a digital leader in the industry.
Form 5498 is not required for the customer to file their tax return. In lieu of receiving the 5498, the customer can refer to their December account statement for balance information, including their account’s year-end value. This will not impact NFS’s reporting requirements to the Internal Revenue Service (IRS).
Please note: Private Label IRAs, where the correspondent is the IRA custodian, will not be affected by this suppression effort. Private Label IRA owners will continue receiving Form 5498s. NFS will consider including these accounts as a possible future enhancement.
Customer Notification
The December 2023 statement will include the following message informing customers of this change. Please note, this message will occupy one of the four available marketing message spots:
Note, the December 31, 2023, value of this account reflected on this statement will be reported to the IRS as part of year-end tax-reporting. You will receive IRS Form 5498 in January 2023 if you made any contributions, recharacterizations or conversions, or if you held Hard-to-Value assets during 2023. If you make contributions for 2023 in 2024, you will be provided a Form 5498 reflecting those contributions in May 2024. If you have a periodic distribution plan or check writing on your IRA account, please access www.mybrokerageinfo.com for updated tax withholding information. It is important to review the beneficiaries listed on your Premiere Select IRA account and update if needed.
Related Links & Reference Materials
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All year long, but especially during this season, we’re grateful for our partnership with you! Wishing you a wonderful Thanksgiving holiday!
As a reminder, ESI’s holiday hours are:
Thanksgiving Day, Thursday, November 23rd: ESI and the Market are closed.
Friday, November 24th: Markets close at 1:00pm ET. ESI phones will be turned off at 1:00pm ET.
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Deadlines to have your FINRA Regulatory Element CE and Annual Compliance Meeting completed are approaching fast!
November 30, 2023 – Deadline for completing FINRA Regulatory Element CE
December 31, 2023 – Deadline for Annual Compliance Meeting completion
Other Important Dates
2023 Premiere Select Retirement Account Annual Maintenance Fee Cycle
January 5th, 2023, through January 27th, 2023 – Liquidation/Write Offs – Accounts with eligible securities will be liquidated to cover uncollected fees or written off and charged to the advisor on record (if less than $25).
Compliance Deadlines
February 28, 2024 – Deadline for Firm Element CE completion
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The ESI Suitability team encourages you to contact us about your upcoming Direct Business transactions so that we may discuss big picture suitability topics and finer details prior to finalizing them with the client.
To provide you with the gift of time and ensure success, we recommend that you connect with us and utilize the Transaction Preview process. By leveraging Docupace and Starting Point we can preview Direct Business paperwork before you finalize it with client signatures. Engaging the Suitability Team before documents are signed allows us to work through any paperwork updates or questions and reduce potential back and forth with the client.
For any questions or to start the Transaction Preview process please contact the ESI Suitability team by calling 800-344-7437.
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Partnering with an Asset Manager for Model portfolios offers invaluable resources for clients and offers scale to your business, streamlining comprehensive investment solutions, and freeing up time for client-centric relationship management. Click here to learn more about how Advisors are leveraging partner portfolio utilization to elevate both their business and client outcomes.
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Did you know[1]:
Despite the tax benefits, changing requirements, and employee attraction/retention benefits, many small business owners still believe that their business is too small for a 401(k) plan or that they can’t afford a plan.[3]
So how do you start the conversation?
How to Get Started
Understand Your Competitive Advantage
3D/L Capital Management, a retirement plan investment fiduciary, and Vestwell, an advisor-centric retirement plan provider, can provide the expertise and service you and your clients need to address common business owner concerns. Their advisor-centric value proposition gives you a competitive edge, providing:
Identifying Prospects
A common prospect profile is:
Finding Prospects
In addition to reviewing your current book of business for prospects, consider establishing referral relationships with CPAs, payroll companies and benefit brokers to identify qualified prospects.
Utilize Your Resources and Partners
With 3D/L and Vestwell as your partners you don’t need to worry about being a 401(k) expert – you have a team behind you! Below you’ll find a list of resources to help you build your business owner clients!
Resources
[1] Frequently Asked Questions About Small Business 2023 – SBA’s Office of Advocacy
[2] States – Georgetown Center for Retirement Initiatives
[3] Three in Four Small Businesses Don’t Offer a 401(k) Plan | PLANSPONSOR
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