« Back | Press release: February 25, 2014
Janney Montgomery Scott selects Putnam Investments to manage firm's nearly $250 million defined contribution plan
Company Embraces 'Enhanced Participant Experience' Approach Driven by Putnam
BOSTON, February 25, 2014 — Putnam Investments announced that it has entered into an agreement with Janney Montgomery Scott to serve as its defined-contribution record-keeper and provide a host of plan services for employees. Janney, headquartered in Philadelphia, holds nearly $250 million in assets in its defined contribution plan for approximately 2,200 participants.
The firm will be providing its employees with access to Putnam's proprietary Lifetime Income Analysis Tool which helps participants gain insight into how current and future savings may impact their estimated monthly income in retirement — and will allow Janney to take a macro view of its plan to better educate and help guide outcomes for employees. In 2013, Putnam's Health Cost Estimator was incorporated to bring greater awareness of the affect of future monthly health-care costs -- expected to be the single largest expense for retirees -- on the estimated monthly income for participants in retirement. The Putnam participant experience has been further expanded to include a financial wellness component and will soon provide a social comparison feature.
Janney indicated that its selection committee "was impressed by Putnam's continuing commitment to elevating the overall experience for 401(k) participants, as demonstrated by a series of ongoing innovations and stellar reputation for service." The company further noted that as it strengthens what it expects to become a leading employee benefits program in its industry, it "values the forwardlooking vision and outcome-driven approach being taken by the Putnam-managed 401(k) and is enthused about what this partnership will bring to (its) employees."
"We are excited to partner with Janney Montgomery Scott in the creation of a progressive, resultsdriven 401(k) plan that will be focused on helping participants attain greater levels of preparedness for retirement," said Edmund F. Murphy, III, Head of Defined Contribution, Putnam Investments. "Janney and Putnam share a commitment to tapping innovative solutions and best possible thinking in seeking the optimal outcome for plan participants."
Putnam Lifetime Income Analysis Tool
Putnam's Lifetime IncomeSM Analysis Tool was introduced in January 2010 as a new approach that changes the lens through which 401(k) plan participants view their current retirement savings activities, by placing much greater focus on future monthly income needs and shortfall planning. The online experience is designed to help participants project how much monthly income their current retirement savings may generate in retirement compared to what they may need, and then offer actionable next steps.
Putnam Health Cost Estimator
The Putnam Health Cost Estimator, launched in Spring 2013, provides 401(k) plan participants with a personalized estimate of how much of their expected future monthly income is likely to be needed to cover their healthcare costs in retirement, including itemized insight on medical, dental and pharmaceutical expenses, at different ages. The projections are generated from individual participant data and cost models using proprietary actuarial-based guidelines and expressed as monthly costs, providing participants with a digestible format that lays the groundwork for action steps to address potential savings shortfalls.
In late 2013, Putnam introduced a new Financial Wellness program that provides plan participants with a suite of education tips, financial management tools, and access to budgeting experts -- all integrated into the Lifetime Income Analysis experience, to help them evaluate resources for potential retirement savings.
"How Do I Compare?"
In the coming months, Putnam will launch "How Do I Compare," a new 401(k) feature, fully integrated into the firm's Lifetime IncomeSM Analysis Tool, which will allow plan participants to compare their progress in saving for retirement with their peer group and top-tier savers.
About Putnam Investments
Founded in 1937, Putnam Investments is a leading global money management firm with over 70 years of investment experience. At the end of January 2014, Putnam Investments had $147 billion in assets under management. Mutual fund assets were $76 billion. Institutional assets were $71 billion. Putnam has offices in Boston, London, Frankfurt, Amsterdam, Tokyo, Singapore and Sydney. For more information, visit http://www.putnam.com.
About Janney Montgomery Scott
Janney Montgomery Scott LLC provides advice to individual, corporate and institutional clients. Our expertise includes guidance about asset management, corporate and public finance, equity and fixed income investing, equity research, institutional equity and fixed income sales and trading, investment strategy, financial planning, mergers and acquisitions, public and private capital raising, portfolio management, retirement and income planning, and wealth management. Janney is an independentlyoperated subsidiary of The Penn Mutual Life Insurance Company and is a member of the Financial Industry Regulatory Authority (FINRA) and Securities Investor Protection Corporation (SIPC). www.janney.com
IMPORTANT: The projections, or other information generated by the Lifetime Income Analysis Tool regarding the likelihood of various investment outcomes, are hypothetical in nature. They do not reflect actual investment results and are not guarantees of future results. The results may vary with each use and over time. The analyses present the likelihood of various investment outcomes if certain investment strategies or styles are undertaken, thereby serving as an additional resource to investors in the evaluation of the potential risks and returns of investment choices.
Each simulation takes into account the participant's current plan balance and investment mix, as well as his or her age, income, retirement date, contribution rate, likely future savings, and estimated Social Security benefit. The tool runs over 50 billion market simulations to provide an estimate of a monthly income likely to be generated at retirement. The Lifetime Income Analysis Tool is an interactive investment tool designed for Putnam 401(k) participants to illustrate the estimated impact of a participant's plan balances and projected savings on income in retirement. The tool takes into account both before-tax and after-tax accumulated balances and future regularly scheduled contributions for estimated projections. It cannot account for dramatic changes in a participant's personal situation, including unexpected expenses and other financial situations that may negatively affect one's estimated monthly income in retirement. You are advised to consider your other assets, income, investment options, investment time horizon, income tax bracket, and risk tolerance when planning for specific investment goals. It is recommended that you consult a financial advisor for more information. It is important to note that the results from this tool are estimates based on what you input today. The results are not a guarantee of actual outcomes and will change as your inputs change.
Health-care costs and projections are provided by HealthView Services, Inc., a third-party vendor. They provide broad, general estimates and information that may help you consider your retirement income needs by better understanding potential health-care costs. This estimate is provided for educational purposes only, and you should not rely on it as the primary basis for your medical, insurance, investment, financial, retirement, or tax planning decisions. Costs are estimated, hypothetical in nature, and not guaranteed. Your actual medical costs will likely vary (sometimes significantly) from the estimates. Putnam does not believe that HIPAA applies to the data obtained from plan participants using this new tool.
Putnam has partnered with LearnVest to provide access to a full range of budgeting and planning tools - including access to a LearnVest financial wellness expert. Fees may apply to certain LearnVest services. Use LearnVest to get a better handle on your day-to-day finances, and to get the help you need to make progress toward all your financial goals.
Investors should carefully consider the investment objectives, risks, charges, and expenses of a fund before investing. For a prospectus, or a summary prospectus if available, containing this and other information for any Putnam fund or product, call your financial representative or call Putnam at 1-800-225-1581. Please read the prospectus carefully before investing.