Deals and People July 5, 2019

Retirement Industry People Moves

HealthEquity to acquire WageWorks; AIG Life & Retirement adds CEOs; CBIZ acquires investment adviser firm; and more.

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Art by Subin Yang
Art by Subin Yang

Art by Subin Yang

HealthEquity to Acquire WageWorks

HealthEquity Inc., an independent health savings account (HSA) non-bank custodian, and WageWorks Inc., an administrator of HSAs and complementary consumer-directed benefits (CDBs), have entered into a definitive agreement under which HealthEquity will acquire all of the issued and outstanding shares of common stock of WageWorks.

The acquisition is expected to give HealthEquity access to more of the fast-growing HSA market by expanding its direct distribution to employers and benefits advisers as a single-source, premier provider of HSAs and complementary CDBs, including flexible spending accounts (FSAs), health reimbursement arrangements (HRAs), COBRA administration and commuter accounts.

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“Acquiring WageWorks positions us to accelerate the marketwide transition to HSAs, with greater market access and an end-to-end proprietary platform built to drive members to spend smarter while saving for health care in retirement,” says Jon Kessler, president and CEO of HealthEquity. “Together, we can meet employers and employees wherever they are on their journeys to connect health and wealth, while simultaneously accelerating our growth in an expanding industry. This transaction is compelling for team members and stockholders of both companies, and it accelerates the strategic goals of both companies immediately by adding WageWorks’ market-leading CDB services to HealthEquity’s highly acclaimed HSA platform.”

AIG Life & Retirement Adds New CEOs

AIG Life & Retirement announced that Todd Solash, president, Individual Retirement, and Rob Scheinerman, president, AIG Retirement Services (AIG’s group retirement business), have been named CEO of their respective businesses following the retirement of Jana Greer as president and CEO, Retirement.

Greer announced her retirement earlier this year and has partnered with Solash and Scheinerman to ensure a smooth transition.

Solash and Scheinerman report directly to Kevin Hogan, executive vice president and chief executive officer, AIG Life & Retirement.

“Our individual and group retirement businesses help millions of people achieve financial and retirement security,” says Hogan. “Todd and Rob have done a terrific job for our retirement businesses, and we look forward to their continued progress developing innovative retirement solutions to meet the needs of our clients. Todd and Rob are committed to helping Americans achieve a secure retirement, and I am certain our clients will continue to benefit from their experience, proven leadership and vision.”

Solash joined AIG in 2017 as president of Individual Retirement, a provider of investment and lifetime income solutions designed for individuals seeking to achieve financial and retirement security. Solash is based in Woodland Hills, California, where Individual Retirement is headquartered.

Scheinerman joined AIG in 2003 and has led AIG Retirement Services since 2017. He is based in Houston, where the business is headquartered.

CRI Now Offers TPA Services

Carr, Riggs & Ingram (CRI) recently added CRI TPA Services LLC to its family of companies. The new portfolio company will supply tailored retirement plan solutions for clients’ expanding business needs.

CRI TPA Services provides third-party administrative (TPA) services for employer-sponsored retirement plans, with a primary focus on 401(k) plans, 403(b) plans and defined benefit (DB) plans. It will also provide consulting services on retirement plan best practices, plan design and implementation, and plan corrections.

“By adding this new portfolio to the CRI family of companies, we are able to position ourselves as the comprehensive solution to all of our clients’ business needs by strategically assisting them on a broad range of activities,” says Bill Carr, managing partner of CRI. “The goal of CRI TPA Services LLC is to offer the most customizable retirement plan options that best suit our clients’ unique needs.”

“We’re excited to get the ball rolling and start working with our clients on even more projects,” says Daniel Rodriguez, CEO of CRI TPA Services. “I believe we are able to offer a different level of service and experience than what people typically expect from most TPA firms. We are committed to making sure our clients receive comprehensive, consistent service built on transparency.”

 For more information and to view the new website, visit CRItpa.com.

CBIZ Acquires Investment Adviser Firm

CBIZ Inc. announced the acquisition of substantially all of the assets of Gavion LLC of Memphis, Tennessee, effective July 1.

Gavion is a registered investment adviser (RIA) providing investment consulting services to a diverse base of institutional clients encompassing both traditional and alternative strategies. With assets under advisement (AUA) of more than $27 billion, Gavion works with foundations, endowments, corporate plans, public funds, trust companies and hospitals across the U.S. The company has 14 employees and nearly $4 million in revenue.

Gavion will be integrated into CBIZ Investment Advisory Services LLC, a registered investment adviser, under the Retirement Plan Services division of CBIZ Benefits & Insurance Services Inc.

Jerry Grisko, president and CEO of CBIZ, says, “This acquisition will add significant talent to our investment advisory and retirement plan services team and augment our assets under advisement. Gavion’s expertise in the alternative investment space will enhance our capabilities in this area and allow CBIZ to expand further into the foundation and endowment market.”

Products July 5, 2019

Investment Product and Service Launches

Buffalo Funds introduces institutional class shares; Nuveen adds to Diversified Dividend and Income Fund team; and State Street Global Advisors launches ESG money market fund. 

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Art by Jackson Epstein
Art by Jackson Epstein

Art by Jackson Epstein

Buffalo Funds Introduces Institutional Class Shares

Kornitzer Capital Management (KCM), investment advisor to the Buffalo Funds, announced the launch of an Institutional Class of shares, which are available to eligible investors who meet an initial investment minimum of $250,000 or with no initial or subsequent investment minimums to: retirement plans such as 401(a), 401(k) or 457 plans; certain IRAs if the amounts invested represent rollover distributions from investments by any of the retirement plans invested in the funds; registered investment advisers investing on behalf of clients in exchange for an advisory, management or consulting fee; and wrap fee programs of certain broker-dealers. The new share class became effective on July 1.

“The decision to launch institutional shares is in response to the ever-evolving investment marketplace and the desire to meet client expectations to the greatest extent possible,” says Christopher Crawford, director of advisor relationships. “In short, institutional shares should increase the marketability of the funds going forward and help to ensure Buffalo Funds ability to thrive long into the future.”

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“The introduction of this institutionally-priced share class reaffirms our commitment to align with customer interests, “ says Clay Brethour, CFA, Buffalo Funds President. “The Institutional Class refines our offerings and provides investors access to Buffalo Funds’ specialized investment capabilities, while matching their liquidity and fee requirements.”

The Institutional Class was added for all 10 mutual funds in the Buffalo Funds family, with new ticker symbols and CUSIP numbers. Financial intermediaries and shareholders should check their custodial platforms to see if the new share class is available for purchase. Current investors who qualified for the new share class as of July 1 had their shares automatically converted to the new Institutional Class.

Nuveen Adds to Diversified Dividend and Income Fund Team

The Nuveen Diversified Dividend and Income Fund has updated its portfolio management team. Effective immediately, Kevin Murphy will be named to the fund’s current portfolio management team and will focus on the portion of the fund managed by Wellington. The fund’s investment objectives, investment strategies and management philosophy remain unchanged.

Murphy, senior managing director, is an emerging markets debt portfolio manager at Wellington. He works closely with Wellington’s Emerging Markets Debt Investment Team to develop investment strategy in the sector. Murphy joined Wellington Management in 2016. Prior to that, he worked at Putnam as the lead portfolio manager responsible for all external sovereign and corporate emerging market debt investments across a range of different strategies, as well as the lead portfolio manager for the investment-grade corporate credit exposure in all of Putnam’s funds. In addition, he co-led a credit team based in Boston and London. Murphy also worked at BancBoston as a managing director on the Emerging Markets Derivative Products Group and at ING Baring Securities in New York City as the vice president of the Commodity Finance, Commodity Derivatives, and Structured Asset Groups. Murphy received his bachelor’s degree in electrical engineering from Columbia University’s School of Engineering and Applied Science.

State Street Global Advisors Launches ESG Money Market Fund

State Street Global Advisors, the asset management business of State Street Corporation, has launched the State Street ESG Liquid Reserves Fund, which seeks to apply financially material environmental, social, and governance (ESG) scores to the management of the fund. The company says the fund is the first money market fund to offer a portfolio composed entirely of investments that meet ESG criteria at the time of purchase.

“We’re proud to apply State Street Global Advisors’ longstanding ESG commitment to the launch of this fund, which provides the first fully ESG-focused money market fund option by incorporating sustainable investing within a cash strategy,” says Pia McCusker, global head of Cash Management at State Street Global Advisors.

The fund uses R-Factor, State Street Global Advisors’ new ESG scoring system that draws on multiple data sources and leverages widely accepted and transparent materiality frameworks to generate a unique ESG score for issuers. In particular, R- Factor leverages the Sustainability Account Standards Board’s (SASB) and country-specific corporate governance frameworks and provides transparency into how and what State Street Global Advisors considers to be financially material ESG factors.

The fund invests in prime money market instruments that meet State Street Global Advisors’ ESG criteria. The portfolio construction process is a multi-step method involving fundamental risk budget allocation, optimization, and ESG assessment. The fund, which is domiciled in the United States and registered under the Investment Company Act of 1940 (the Act), will have a floating net asset value and will be managed and operated to comply with Rule 2a-7 of the Act.

“As appetites for ESG investment opportunities continue to grow, institutional investors need options across all asset classes. There’s currently an industry-wide lack of ESG data that is financially material, consistently reported, and comparable across firms; using the R-Factor scoring system allows us to address this critical issue by incorporating State Street Global Advisors’ expertise,” says McCusker. “This is only the beginning for the application of R-Factor  as we explore further ESG-related opportunities at the institutional level.”

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