1) In India, a Tough Row to Hoe for T. Rowe
Wall Street Journal | 2/14/2012
Because… The challenges T. Rowe Price is facing highlight the difficulty for asset management firms that look to exploit fast-growing overseas markets. Expanding presence in developing markets carries special risks. Besides economic and market factors, uncertainty caused by government regulations, changing investor behavior, divergence in management philosophy as well as cultural differences, competition from local investment firms, and lack of brand recognition can all affect a firm’s ability to survive and thrive in a foreign market.
2) New Service Aids ETF Use in 401(k)s
Investment News | 2/14/2012
Because… For a long time, operational constraints prevented retirement plans from adding ETFs to their investment menu. With technological advances, accounting and recordkeeping systems have evolved to accommodate ETFs within a 401(k) framework. This will lead to greater acceptance of ETFs in 401(k) plans. Meanwhile, ETF providers will become more proactive in seeking distribution opportunities in the defined contribution space. We expect to see ETF sponsors allocate more resources to develop relationships with plan sponsors and advisors.
3) The Principal Enhances Retirement Business Building Resources for Financial Professionals
The Principal | 2/14/2012
Because…Firms that provide business building resources can compete more effectively with others that focus solely on investment products. Billions of dollars moving in and out of retirement accounts are luring more advisors into the retirement business, but advisors constantly grapple with how to build and grow their book of business. Actionable tips and techniques, targeted practice management tools, and materials specially designed for prospecting and marketing should help advisors enhance their practice and explore new ways to uncover hidden opportunities.