Deals and People December 23, 2021

Retirement Industry People Moves

Transamerica selects large market retirement sales leader, while TRA completes third acquisition of 2021.

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Art by Subin Yang
Art by Subin Yang
Art by Subin Yang

Transamerica Selects Large Market Retirement Sales Leader

Transamerica has announced that Ryan Franken has rejoined the company as the national sales manager of retirement large markets. He will report directly to Darren Zino, senior managing director of U.S. retirement distribution.

“Ryan is a proven leader with in-depth knowledge of the retirement plan industry, and he and his team will prove valuable to the advisers and plan sponsors of large retirement plans,” Zino says.

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Franken first joined Transamerica in 2011 as a mid-market sales leader in the New York City area. He was promoted to division vice president of mid-market retirement sales for the company’s northeast region in 2015. He pursued other opportunities in 2018, and rejoined Transamerica in December. He is a graduate of Georgetown University and holds a master’s degree in business administration from Cornell University.

TRA Completes Third Acquisition of 2021

The Retirement Advantage Inc. (TRA) has announced the acquisition of The Law Offices of R. David Danziger (RDD), of Southampton, Pennsylvania.

“Bringing RDD into the TRA family will enhance our capabilities in multiple markets,” says Matt Schoneman, TRA’s president and owner. “The expansion of our footprint and team, additional service offerings, and the opportunity to provide additional consulting capabilities throughout our network only enhances our ability to deliver desired solutions to our clients.” 

The strategic acquisition of RDD was completed December 1. With the acquisition, TRA is committed to continuing to support the adviser and recordkeeping partners of RDD with customized retirement plan solutions that exceed business owner and employee retirement plan goals.

There will be no immediate changes to the services and offerings from RDD or TRA as the integration of the two businesses is approached thoughtfully over time.

Products December 23, 2021

Investment Product and Service Launches

State Street launches new retirement income strategy, while Federated Hermes launches two new ETFs.

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Art by Jackson Epstein

State Street Launches New Retirement Income Strategy

State Street Global Advisors, the asset management business of State Street Corp. has launched IncomeWise, a next-generation solution that blends the flexibility and simplicity of traditional target-date funds (TDFs) with the security of guaranteed lifetime income. Available for defined contribution (DC) plans, this solution represents a multi-year, cross-industry development, resulting in a new kind of retirement income strategy.

IncomeWise focuses on providing a simple investment option to support participants through all their retirement years. The solution uses State Street’s target-date glide path to help participants accumulate wealth during their savings years. A portion of these savings can then be converted into a guaranteed income stream for later years of retirement by purchasing a qualified longevity annuity contract (QLAC). This approach offers participants income security when they are likely to need it most, while providing flexibility and access to savings during their early retirement years.

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State Street says IncomeWise is available to any plan sponsor as a custom TDF offering. The company also said, “State Street Global Advisors is actively developing a collective investment trust [CIT] vehicle for the product as it continues to have a number of exciting discussions with plan sponsors similarly interested in better addressing longevity risk.”

Federated Hermes Launches Two New ETFs

Federated Hermes Inc. has launched the Federated Hermes Short Duration Corporate ETF and Federated Hermes Short Duration High Yield ETF. 

These short-duration exchange-traded funds (ETFs) are new tools for investors concerned about inflation and the potential interest-rate risk associated with products that invest in longer-duration securities, the firm says.

The funds use the experience, insights and capabilities developed over the firm’s 50 years of managing fixed-income solutions for investors. The ETFs also incorporate Federated Hermes’ proprietary environmental, social and governance (ESG) assessment process in evaluating the risk profiles of investment-grade and high-yield securities.

“With a growing U.S. client appetite for fixed income, our first two ETF strategies build upon Federated Hermes’ heritage of responsible investing, diligent credit analysis and experience in providing compelling options at every step of the yield curve,” says John Fisher, president and chief executive officer of Federated Advisory Cos.

The Federated Hermes Short Duration High Yield ETF seeks high current income by investing in a diversified portfolio of high-yield bonds, bank loans and other securities. The strategy seeks to maintain an effective duration of three years or less. The ETF is managed by senior portfolio manager Steven Wagner, portfolio manager Tony Venturino and senior portfolio manager Mark Durbiano, who leads the firm’s domestic high-yield group. Nine industry-specific analysts and two traders complete the 14-member group supporting the fund.

The Federated Hermes Short Duration Corporate ETF seeks current income by investing primarily in securities with maturities of one to five years and will maintain a duration between 1.5 and 3.5 years. The strategy may also invest up to 10% of its portfolio in non-investment grade fixed-income securities.

Senior portfolio manager John Gentry, who heads the Federated Hermes corporate fixed-income group, and portfolio manager Robert Matthews are supported by six analysts and two traders who specialize in investment-grade fixed income.

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