Practice Management Value-Add Programs. TIAA-CREF Asset Management. Practice Management. Preparing you for new investors and new opportunities

Transcription

1 Practice Management Value-Add Programs TIAA-CREF Asset Management Practice Management Preparing you for new investors and new opportunities

2 Say hello to today s new investors. And to tomorrow s retirement opportunity. The faces of wealth are changing. As demographics evolve, women and Millennials are on the rise. And as all investors show greater concern for the wider world in which they live, values are shifting and conscious investing is playing a much larger role. In this new environment, practice management solutions from TIAA-CREF can help you build a long-lasting, sustainable business. We have the experience and programs you need to tap into today s investors and grow. Our practice management solutions can also help you build your retirement practice. Since 1918, TIAA-CREF has helped millions of people save for retirement. Our practice management programs draw on this background to give you the insights and knowledge you need to expand your retirement practice whether it s growing in the $1.38 trillion 403(b) retirement arena or boosting better retirement outcomes in 401(k) plans we have the tools to help you better grow and serve retirement plans. The conscious investor 403(b) plans 80 % say assuming similar returns, they d prefer an investment approach that aligns with their personal philosophy % of investors say that their advisor had never spoken with them about responsible investing. 2 The total 403(b) market is expected to grow from $1.38 trillion of assets in 2013 to $ 1.8 trillion by ,4

3 Women & Millennials Only half of healthcare organizations use advisors to assist them in 403(b) plan design and compliance. 5 The number of U.S. women with six-figure incomes is rising at more than three times the rate of men who earn that amount % of heirs intend to fire their parent s advisor once they ve inherited their parents wealth. 7 TIAA-CREF Practice Management 1

4 Programs that build practices To help you strengthen your relationships with current clients and bring in new ones, we use extensive marketing research to develop tools and information you can draw on today to build your practice. See our full range of practice management programs and learn what they can do for you at Get Closer Client Engagement Solutions Audience: Retail Advisors Take client relationships to a deeper level. These programs give you insights into how to engage your current clients and the investors of the future (Millennials, the socially minded and more) in ways that can help you build deeper, more enduring client relationships. Investor Communications Solutions Audience: Retail Advisors / Retirement Specialists / Investors / Participants Sophisticated financial ideas made simple. With timely information, these programs turn complex financial topics into easy-to-understand explanations you can use to educate clients and improve your practice. Retirement Practice Solutions Audience: Retirement Specialists Bring your retirement practice to new heights. Whether it s capturing the $1.38 trillion 403(b) plan market or helping participants with retirement readiness, we have programs that can help you grow your practice. Each one shares the latest thinking on this market with tips and advice from our experts. 2 TIAA-CREF Practice Management

5 Get Closer Client Engagement Solutions Get Closer : Solving the Couples Conundrum How can you build stronger relationships with your couples clients? If you are like most advisors, couples represent more than half of your business. But groundbreaking new research from TIAA-CREF suggests those accounts could be at risk. That s because one partner typically dominates the relationship with you. In the case of death or divorce, the partner advisors know less is likely to leave. 60 % of clients are couples, but 25% of advisors work with only one partner. 9 Get Closer : Solving the Couples Conundrum is a suite of practice management tools designed to help you bring greater balance to your client engagements and build deeper and more enduring client relationships. Get Closer : Seizing the Responsible Investment Advantage Will you win the race to adapt to changing investor attitudes? Many clients are wondering if their portfolios align with their beliefs. In fact, 76% of those under age 35 (Millennials) are interested or very interested in responsible investing options versus 64% for the general population. 8 With Millennials taking center stage, thinking like this will become even more prevalent. Unfortunately, many advisors have never talked to clients about aligning their portfolios with their beliefs. Discover how you can focus on your clients values in conversations and in the investment strategies you recommend. Learn about TIAA-CREF s responsible investing conversation framework, which will help you bring up and respond to requests for these investments. 64 % of investors say that they are interested in investing, or investing more money in RI fund options. 10 Get Closer : Client Segmentation Do you know which clients are really worth your time? Not every client makes an equal contribution to your success. Some have much larger portfolios, for one thing but financial assets alone do not define the full value of a relationship. It s also important to consider a client s referral potential, opportunities for building multigenerational relationships, openness to hearing advice and the cost of meeting their service expectations. Armed with proper client segmentation, you can finally rank your book and determine which clients are really worth your time. You can take advantage of TIAA-CREF s proprietary Client Optimization Tool to help you segment your client list. 2/10 advisors don t segment their client book at all failing to tailor their offerings to each of their client segments. 11 TIAA-CREF Practice Management 3

6 Ready to reach today s new investors? Deepen your relationships with current clients? Or bring your retirement business to the next level? Contact one of your Relationship Managers now. Learn more about all TIAA-CREF Asset Management Practice Management offers you: Visit Investor Communications Solutions Give investors greater confidence in their decisions and spark more productive discussions with your clients. Tuesday Tips Tuesday Tips from TIAA-CREF are filled with quick ideas designed to help you look at your business in new ways. They give you access to the latest thinking from our practice management experts. Powerful Investor Charts Educate and motivate your clients with these easy-to-understand communications. Each investor chart is a two-page presentation of a single important topic (like diversification or retirement savings) with simple charts and clear explanations. Each investor chart is accompanied by an Advisor Explanation offering more background and additional ideas for starting conversations. With these easy-to-use tools, you can clarify investment concepts, give investors greater confidence in their decisions and spark more productive discussions with your clients. Sample Investor Chart Topics What Goes Up When Stocks Go Down? How different investments performed during the last two bear markets. Will Your Savings Last? How you would have fared over a 30-year retirement using a 4% portfolio withdrawal rate. It s Easy If You Start Early. How much you have to save each month to amass $1 million by retirement. Time Not Timing. How you would have fared if you had invested at each year s stock-market peak. Should Bond Investors Fear Higher Interest Rates? A look at the performance of a bond yielding 5%, depending on whether interest rates rise, fall or stay the same. Should You Invest All at Once Or Take It Slowly? Historically, investors have earned better results by investing a lump sum right away, rather than moving the money gradually into the market. 4 TIAA-CREF Practice Management

7 Retirement Practice Solutions Unlocking the Trillion-dollar 403(b) Market Looking to target more of the trillion-dollar 403(b) market? This program can help. TIAA-CREF is the 403(b) market leader, with nearly 100 years of experience in helping those who help others. We can show you how to help meet plan sponsors growing need for advice as they struggle with marketplace consolidation and more stringent fiduciary obligations. Leverage our expertise and suite of thought leadership, checklists, sample investment policy statements, regulatory guides and more. Exclusive 403(b) Boot Camps Get an in-depth consultative session on how you can grow your business in the 403(b) market. Our 403(b) boot camps are one-on-one sessions that provide you with a comprehensive look at the latest trends shaping the 403(b) market. Our experts will discuss your current business and what you might need to do to bring it to the next level. This program is highly exclusive, and there is a waitlist to receive consultations. Target-Date Funds: Value-Add Tools for Retirement Specialists Discover some startling revelations about investors which could create opportunities for you. While most advisors consider their clients pretty savvy, many investors: Can t tell the difference between equity, fixed-income and allocation funds. Need help demystifying fees. Find it difficult to stick to their plans. Think they should pull out of equities in retirement. The nonprofit market Higher education plans are comprised of 37% 403(b), 21% Healthcare, 11% K-12, 11% Government segments. and 20% Other types of nonprofit organizations. Grow your business in the 403(b) market. Almost 2/3 of U.S. high-net-worth investors cannot identify the largest fund asset classes (equity, fixed income or allocation). 12 Target-date funds could solve this confusion but most investors don t know what these investments are. Learn how to turn this problem into an opportunity and find ways to play a more active role in guiding plan sponsors and participants. TIAA-CREF Practice Management 5

8 Our experience. Your advantage. The Lipper Awards are based on a review of 36 companies 2012 and 48 companies 2013 and 2014 risk-adjusted performance. Born from a legacy of making a difference, TIAA-CREF Asset Management is a global asset manager dedicated to helping institutional and individual investors achieve their investment goals. Today, we manage more than $639 billion in assets with a long-term perspective and deep expertise across a wide range of traditional and alternative asset classes. 13 We were created to serve the interests of our clients. Thanks to our not-for-profit heritage, we re dedicated to maximizing long-term value for our customers, not short-term profits for shareholders. This alignment of interests creates true, lasting partnerships with our clients, since there are no conflicts in financial decision making. 1 TIAA-CREF, 2015 Practice Management Survey, TIAA-CREF, Socially responsible investing: Strong interest, low awareness of investment options, LIMRA Q4 13 Not-for-Profit Retirement Market Survey. Represents 93% of combined 403(b) and 457 assets estimated to total $1.1 trillion as of December 31, Two-thirds of Other assets belong to 401(k) hospital and healthcare (24%), 401(k) other NFP (28%), and 401(a) other NFP (15%). 4 The Cerulli Report, Retirement Plan Distribution Dynamics: Small and Mid-sized Plan Focus, Exploring 403(b) Plan Practices and Trends: Healthcare and Higher Education, LIMRA, 2013 and DCP U.S. Census Bureau, Rothstein Kass study. Changing of the Guard. July American Express OPEN, The State of Women-Owned Businesses Report, U.S. Department of Education. 10 Statistics Income Bulletin, Winter Spectrum Group, Study of Wealthy Women Investors, Respondents were given a multiple-choice question with the top 20 Morningstar funds. Rankings and total net assets were accurate as of study s commencement in November Source: Survey statistics from the 2015 TIAA-CREF Advisor Practice Management Study. 13 Data as of June 30, The Lipper Award is given to the group with the lowest average decile ranking of three years Consistent Return for eligible funds over the three-year period ended 11/30/12, 11/30/13, and 11/30/14 respectively. TIAA-CREF was ranked among 36 fund companies in 2012 and 48 fund companies in 2013 and 2014 with at least five equity, five bond, or three mixed-asset portfolios. For financial advisor use only. Not for use with or distribution to the public. Past performance is not indicative of future results. The material is for informational purposes only and should not be regarded as a recommendation or an offer to buy or sell any product or service to which this information may relate. Certain products and services may not be available to all entities or persons. Investment, insurance and annuity products are not FDIC insured, are not bank guaranteed, are not bank deposits, are not insured by any federal government agency, are not a condition to any banking service or activity, and may lose value. You should consider the investment objectives, risks, charges and expenses carefully before investing. Please call or log in to tiaa-cref.org for product and fund prospectuses that contain this and other information. Please read the prospectuses carefully before investing. TIAA-CREF Asset Management provides investment advice and portfolio management services to the TIAA-CREF group of companies through the following entities: Teachers Advisors, Inc., TIAA-CREF Investment Management, LLC, and Teachers Insurance and Annuity Association of America (TIAA ). Teachers Advisors, Inc., is a registered investment adviser and wholly owned subsidiary of Teachers Insurance and Annuity Association of America (TIAA). TIAA-CREF is the name commonly used to refer to the companion organization for TIAA and CREF. TIAA-CREF Individual & Institutional Services, LLC, Teachers Personal Investors Services, Inc., and Nuveen Securities, LLC, Members FINRA and SIPC, distribute securities products. Each is solely responsible for its own financial condition and contractual obligations. Nuveen operates as an independent subsidiary of TIAA-CREF Teachers Insurance and Annuity Association of America-College Retirement Equities Fund (TIAA-CREF), 730 Third Avenue, New York, NY C _ A14840 (08/15)