Fund marketers on the hunt for a fresh revenue stream may want to pay
extra attention to President Obama's words during his State of the Union
address Wednesday night. The president will discuss, among others, a five-point
middle-class agenda, which includes the creation of an automatic IRA,
This should be music to the ears of fund firms that do not have a 401(k) recordkeeping
arm. For fund firms that play in the 401(k) space as investment-only providers, attracting
401(k) assets can be very challenging even in an era of open architecture.
The automatic IRA proposal, which was devised by Mark Iwry, who now
serves as deputy assistant secretary for retirement and health at the Treasury, would
open up another way for fund firms to gather retirement assets.
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