Wells Fargo to Offer Financial Engines’ Independent Advisory Services to 401(k) Clients
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CHARLOTTE, N.C.--()--Wells Fargo & Company (NYSE:WFC) today announces that it has entered into an agreement to offer Financial Engines’ (NASDAQ:FNGN) suite of institutional retirement planning solutions to companies with 401(k) plans recordkept by Wells Fargo. As the nation’s largest independent registered investment advisor1, Financial Engines is the leader in providing high-quality advisory services to retirement plan participants. Wells Fargo anticipates a release date of mid-2016, at which time retirement plan sponsors on the Wells Fargo recordkeeping platform can elect to add this expanded offering to their retirement benefit plans to help participants make the most out of their retirement savings.

The new direct offering consists of Financial Engines’ full suite of advisory services for 401(k)-type retirement plans, including:

  • Professional Management - a discretionary personalized management service for participants who want to partner with or delegate the management of their retirement accounts to a professional;
  • Online Advice - personalized online savings and investment advice and retirement income projections for investors who want to manage their retirement themselves;
  • Income+ - a retirement income solution that provides steady and flexible income in retirement; and
  • Income planning and Social Security claiming guidance through Financial Engines’ well-regarded Social Security Planner.

Under the agreement, Financial Engines will serve as the advisor and plan fiduciary for the advisory services. All participants will have access to non-commissioned Investment Advisor Representatives, as well as ongoing personalized communication and education that assess their current retirement outlook and make suggestions for improvement.

“We know that people want help with many aspects of their 401(k) plans – this includes everything from how much to save and how to invest to how to make their money last once they have entered retirement,” said Joe Ready, head of Wells Fargo Institutional Retirement and Trust. “This gives companies an independent option for offering that help to their employees wherever they are in their retirement journey.”

According to the Wells Fargo/Gallup Investor and Retirement Optimism Index for the first quarter of 2015, one in three investors in a 401(k) say they need advice from others. When asked which of five aspects of investing they most need advice on, 32% of 401(k) investors want help knowing which funds to invest in, and 29% want help knowing whether to reallocate their investments according to changing conditions.

“We are excited to be working with a trusted company like Wells Fargo to expand the availability of our independent advisory services to more plan sponsors and 401(k) participants,” explained Lawrence Raffone, president and chief executive officer of Financial Engines. “Financial Engines’ sole focus is to provide high-quality, unconflicted retirement advice and management. We look forward to working with Wells Fargo to help more Americans achieve the retirement security they deserve.”

About Wells Fargo

Wells Fargo & Company (NYSE: WFC) is a nationwide, diversified, community-based financial services company with $1.7 trillion in assets. Founded in 1852 and headquartered in San Francisco, Wells Fargo provides banking, insurance, investments, mortgage, and consumer and commercial finance through more than 8,700 locations, 12,800 ATMs, and the internet (wellsfargo.com) and mobile banking, and has offices in 36 countries to support customers who conduct business in the global economy. With approximately 266,000 team members, Wells Fargo serves one in three households in the United States. Wells Fargo & Company was ranked No. 30 on Fortune’s 2015 rankings of America’s largest corporations. Wells Fargo’s vision is to satisfy all our customers’ financial needs and help them succeed financially. Wells Fargo perspectives are also available at Wells Fargo Blogs and Wells Fargo Stories.

About Financial Engines

Financial Engines (NASDAQ: FNGN) is America’s largest independent investment advisor. We help people make the most of their retirement assets by providing professional investment management and advice. Headquartered in Sunnyvale, CA, Financial Engines was co-founded in 1996 by Nobel Prize-winning economist Bill Sharpe. Today, we offer retirement help to more than nine million employees across 600+ companies nationwide (including 143 of the Fortune 500). Our investment methodology, combined with powerful online services, dedicated advisor center and personal attention allow us to help more Americans get on the path to a secure retirement. Advisory and sub-advisory services provided by Financial Engines Advisors L.L.C., a federally registered investment advisor and wholly-owned subsidiary of Financial Engines, Inc. Financial Engines does not guarantee future results.

Forward-Looking Statements

This press release contains forward-looking statements, including statements regarding the use of professional investment and financial planning help, which involve risks and uncertainties that could cause actual results to differ materially. These risks and uncertainties are outlined in our SEC filings. You are cautioned not to unduly rely on these forward-looking statements, which speak only as of the date of this press release. Unless required by law, Financial Engines undertakes no obligation to publicly revise any forward-looking statement to reflect circumstances or events after the date of this press release or to report the occurrence of unanticipated events.

1 For independence methodology and ranking, see InvestmentNews Data Center. (http://data.investmentnews.com/ria/).