American Express Retirement Services Launches Advice Platform Powered by Morningstar
Clients to give participants access to investment planning services via the web, telephone and in person
MINNEAPOLIS, MN, September 2, 2003 -- American Express Retirement Services announced today the launch of its retirement plan advice and guidance platform. The new platform combines the power of the Morningstar(R) Enterprise Advice Solution(SM), a comprehensive set of retirement plan advice services, with American Express Financial Advisors, one of the most dynamic networks of personal, face-to-face financial educators in the industry.
Retirement plan sponsors now have the opportunity to provide plan participants access to Morningstar Advice services via three different channels: the web, in person and over the telephone. This multi-faceted platform also marks the first time the Morningstar Advice Call Center(SM) tool has been made available.
American Express Retirement Services clients in the initial implementation include: Air Liquide, which specializes in industrial and medical gases and related services, and Chemtex, an engineering partner firm. Additional clients are already preparing to implement the new program before the end of the year. American Express Retirement Services initially announced the new platform along with the retention of Morningstar in January 2003.
According to Rusty Field, vice president of American Express Financial Education and Planning Services, "Our own research(a) tells us that more than half of the people working for companies with 401k retirement plans would like assistance in deciding where to put money in the plan, and more than one third said their need for advice has increased with the recent market volatility. The study also found that a majority of people prefer personal interaction (in-person or on the phone) to online or paper-based forms of guidance or advice. All this has driven us to create this umbrella approach that offers an advice or guidance solution for everyone, meeting both plan sponsor and participant demand."
"Multiple-channel retirement advice is the wave of the future. American Express is giving employers what they have been asking for--a variety of ways in which to help their employees successfully meet their goals," said John Rekenthaler, president of Morningstar Associates, LLC. "Through our online and call center tools, Morningstar Associates is ready to serve investors in today's rapidly changing marketplace."
"The top reasons plan sponsors give for not offering their participants investment help has been the cost and fiduciary concerns," said Field. "We believe our approach effectively removes these barriers, offering our clients guidance-level service at no cost. Additionally, our arrangement is designed to be consistent with recent Department of Labor direction giving plan sponsors more peace of mind while giving participants access to retirement planning help with the human interaction many are seeking."
About Morningstar, Inc. and Morningstar Associates, LLC
Morningstar, Inc. is a leading global investment research firm that provides an extensive line of print, software, and web-based products and services for individuals, financial advisors and institutions. Morningstar is a valued source of investment information and analysis for stocks, mutual funds, exchange-traded funds, closed-end funds, separate accounts, 529 plans, and variable annuities.
The Morningstar(R) Enterprise Advice Solution(SM) is provided by Morningstar Associates, LLC, a registered investment advisor and a wholly owned subsidiary of Morningstar, Inc. The financial data and methodology used in the Enterprise Advice Solution are proprietary to Morningstar, Inc., and/or Morningstar Associates, LLC.
About American Express Retirement Services
American Express Retirement Services, a service group of American Express Financial Advisors, is a provider of services for defined contribution and 401k plans with total combined assets of more than $27 billion and a participant base of more than 1 million as of June 30, 2003. Based in Minneapolis, it provides corporations, unions and municipalities nationwide with a complete package of financial education, recordkeeping and trustee services for qualified retirement plans. For more information on American Express Retirement Services, visit www.americanexpress.com/sponsors.
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