Fund Firms Fail to Provide Wealth Transfer Tools

Less than a third of mutual fund companies are providing financial advisers with useful wealth transfer tools and education--thereby causing both to miss out on a potentially huge market due to the transfer of much of the nation's retirement wealth from pension plans into defined contribution plans.

This is according to the findings of a new study by Corporate Insight that analyzed the wealth transfer capabilities at 16 mutual fund companies, looking for information on estate planning, beneficiaries, IRAs and legacy issues. Six had nothing on estate planning, and of the remaining 10 that did, Corporate Insight deemed the information useful at only five companies.

"We believe many of the industry's major players are missing a significant opportunity by not providing their adviser networks with the tools and materials necessary to address this important growing market," said Alan Maginn, senior analyst at Corporate Insight.