Edelman Financial Engines targets smaller retirement plans

what happened

Dow Jones Newswires, citing an interview with Barron's Advisor, reports that Edelman Financial Engines is stepping up its focus on small and midsize retirement plans. The firm, which oversees $325 billion in assets, has traditionally drawn much of its prospect pool from employees of large companies. CEO Ralph Haberli, who joined the Santa Clara, Calif.-based business last year, said the smaller-plan segment offers room to scale.

Haberli also described an equity program for the firm’s financial planners and a dedicated group that handles prospective-client leads. The team has grown to more than 40 people in 18 months. EFE said the channel has generated well north of $1 billion in assets, with converted clients then handed to its core planners.

The company remains open to acquiring entire teams, although it has not pursued many such deals over the past several years. Its main recruiting emphasis is individual planners, particularly those seeking technology and scale. EFE has also pledged $10 million to create the School of Financial Planning at Rowan University in Glassboro, N.J., led by co-founder Ric Edelman. Haberli visited students there two weeks ago.

why it matters

The strategy highlights competition in wealth management for both advisers and clients, while linking workplace retirement relationships with broader personal-wealth services.

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