NAPA Net - Polling Places 090222

Is 2023 To Be a Year of Change?

A recent survey found a new high in advisor satisfaction – and a new high in terms of plan sponsors planning to seek a new advisor. This week we’d like to know how that matches your sense of the market.

The survey - the 13th edition of Fidelity’s Plan Sponsor Attitudes Study - found that 88% of plan sponsor respondents are planning to make changes to plan design and 93% are planning to make changes to their investment menu lineup.

Then again, they also found that 47% of plan sponsors were considering a new advisor (compared to 34% in 2021) and 48% were considering a change of recordkeepers – both at a time when 76% of plan sponsors indicated that they are satisfied with their advisor—the highest in five years, according to the report.

This week, we’d like to know what you think of these results – and the reasons plan sponsors gave for what they are looking to find in an advisor – that they apparently aren’t finding in the one they currently use.

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* 1. Do you get a sense that plan sponsors are looking around for a change in advisors?

Yes, but the Fidelity survey numbers seem high.

No.

No - but then, that might just be the plan sponsors I work with.

Yes, but then some always are.

Yes, and the Fidelity survey numbers are probably conservative.

Any comments?

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* 2. The survey found that the top three planned changes in investment menus for the next year were: expanding the number of sustainable or environmental, social, and governance (ESG) funds (27%); increasing the number of investment options (27%); and increasing the number of managed account options offered (26%). Which one(s) are your plan sponsor clients considering (if any) - check all that apply:

Expanding the number of sustainable or environmental, social, and governance (ESG) funds

Increasing the number of investment options

Increasing the number of managed account options offered

Something else? Any comments on the above?

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* 3. The survey also identified the top reasons why plan sponsors may be seeking a new advisor. Which of these are YOU leading with (if any) - check all that apply.

the need for better employee communications and education;

another advisor offered a superior investment lineup; and

the need for an advisor who is more effective in dealing with servicing issues with the recordkeeper.

Something else? Any comments on the above?

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* 4. Other comments about change, types of change, plan sponsors looking to make a change (or two), you looking to make a change (or two)...or life in general?

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* 5. What is your role working with retirement plans?

Advisor

Provider

TPA

Plan sponsor

Recordkeeper

Other (please specify)

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* 6. What size plans do you PRIMARILY work with?

Under $10 million in assets

$10-$20 million

$20-$50 million

$50-100 million

$100 million - $250 million

$250 million - $500 million

Above $500 million

Other (please specify)

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* 7. Suggestions for future survey questions?

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* 8. All responses are anonymous and confidential, of course - but if you'd like me to know who you are, or allow for a response, you can leave your email below...