Engagement Sparks Change: Investment Stewardship moves to the front burner

Your recent investment stewardship report is chock full of action and information. What stands out? (Check out BlackRock’s latest Investment Stewardship report)

From my perspective, it’s how many of the issues that we are focused on are relevant across multiple time periods. Most of our engagement topics don’t lend themselves to “one and done” solutions. For instance, board diversity has been a focus for over five years and we are encouraged by the progress companies have made to build diversity into their nomination process. You’ll also see that our voting this year shows there is still a ways to go.

The other theme that comes through is how responsive many companies are to feedback from shareholders who actively engage with them about investor expectations. I think it's fair to say that in the past few years, investor expectations of directors and of companies’ business models and management have changed. In my experience, companies appreciate being able to discuss those developments directly with their shareholders. 

One of the most significant changes is the extent to which the sustainability of a company's business model is now front and center in a way that it may not have been a decade ago. A large part of this is much greater awareness of how companies … (continued – here!)

Thank you Michelle Edkins for sharing your expertise! Want more? You can connect directly with Ms. Edkins at michelle.edkins@blackrock.com.  

Cracking the Code! These figures reflect July 31 data for Illinois, and June 30 data for California and Oregon. You’ll see some modest but important changes with the addition of this new data. One, average account balances continue to rise. Two, effective opt out rates continue to decline. And, in line with the saying “lies, damned lies, and statistics” you’ll notice that a three percentage point reduction in opt outs / gain in effective participation translates as -5% and +2% on this chart. You’re welcome.

Combined assets are up $3 million since our last report, at $279 million, and about 74% year to date. Funded accounts are over 360,000 – up 36% year to date. Average account balances are now $776 across all savers in all three programs.

Oregon (workforce 1.9 million) – The OregonSaves Board met August 3 (regular session). The Board received an update on the program conversion under way, along with detailed program data and an investment performance review. Decisions included approval of a refreshed Investment Policy Statement reflecting changes associated with the program’s administration transition. Program transition information can be found here. You can download the 8/3 meeting agenda here; board books are available upon request through the OregonSaves team.

Maryland (workforce 3.1 million) – In its July 30 meeting the Maryland$aves Board approved its audit report for the prior fiscal year and reviewed its current FY budget, proposed at $1.45 million. Staff advised that a new hire will be likely required and executed as the program begins its outreach to employers. The Board then met in executive session for a procurement-related discussion. To our knowledge decisions have not been finalized or announced. Materials here.

Colorado (workforce 3.2 million) – as they prepare to engage on a statewide basis, the Colorado Secure Savings Program Board has just published fact sheets for employers, employees, and self-employed workers.

And in general, what are your favorite states up to? If they’re not accumulating savers and assets, they’re getting ready to launch their retirement savings programs. If they’re not doing that, they’re working on legislation. If it’s the off-season, they’re probably getting ready for the 2022 year. We got asked recently whether we favor one model over another. We think the most important focus is coverage and use. We’re not living in a one-size-fits-all world. Follow the data and make good decisions. And we suspect that the state, federal and private sector work now under way are going to lead to a very interesting and productive retirement ecosystem that works for many more uncovered and low-saving Americans in the near future.

Some times they’re right. There are plenty of examples of government misspending on marketing.

The highest priority, of course, should be making sure the program actually works. I’d also argue that it’s pretty hard to design systems and services, especially innovative ones like state-sponsored retirement programs, that truly best serve people’s needs if you don’t make time and resources available to research your target audiences to better understand who they are, what they need, and how to reach them.

Good marketing does just that: it ensures people can easily find and access the …

Stay tuned! / Joel

Columnist and Senior Associate Joel Metlen is based in Oregon. Joel is a pioneer of the state facilitated retirement savings space, woven into a career of public service and innovation. At OregonSaves, Joel’s responsibilities ranged from marketing and employer engagement to operations and data analysis. You’ll see his insights from that experience, and more, here. Key question – will he be as good a sport as Grant is when we mess with his head shot?

As the box says, this little beauty is a kayak. An origami-style kayak, to be more specific.

We liked it so much we ordered a second one for our friends.

Will this distract you from worm farming? It’s very possible. Will it stop you from watching YouTube and TikTok? Definitely not:

In the “try this at home” category, pandemic-emergence productivity strategies from Justine Leconte. We think you’ll like her approach. It’s very gentle.

And on the other side of the spectrum, we have the 12 Week Year by Brian Moran and Michael Lennington. This one isn’t new, in fact it was first published in 2013. But it just might be the kickstart or framework you need if you’re thinking about putting on real pants and heading into the office.

And if having an organized fridge makes you feel more productive at work, try this.

It’s about to get warm again here in the Northwest. As you crack this open we’re probably in triple digits, maybe 100, 104, 106 degrees. Need to cool off? It’s probably time to hop into that new-fangled kayak of yours and pay a visit to Trillium Lake on Mount Hood. 

If you stop in Government Camp on the way back to town, you can pick up a nifty backpack to commemorate your trip. 

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Massena Associates provides process, policy, and implementation consulting on retirement savings programs and products.

Our clientele includes states, governments, policy organizations, and private sector providers. Our specialty – efficient, targeted results. We are an active speaker on retirement security topics, including state-facilitated programs, MEPs and more.

If you’d like to explore working together, we welcome the conversation. Connect with us here, and at 339-236-0684.

Looking for a great retirement savings innovation resource? Led by Dr. Alicia Munnell, the Center for Retirement Research at Boston College develops and hosts terrific content and proprietary research related to states, financial security, social security, and more.

The Georgetown Center for Retirement Initiatives, Exec Angela Antonelli, provides excellent information on state-based and other retirement security innovation and policy.

Pew’s Retirement Savings Project studies the challenges and opportunities for increasing retirement savings and is another great resource - check out the work of John Scott and his terrific team.

If you want a great source of broad-based, consumer-focused retirement news, Jeffrey H. Snyder’s The Morning Pulse is your ticket. You can subscribe here.