AllianceBernstein veteran stepping down — to become a schoolteacher

Fontaine's career change comes amid crucial product launch for DC unit; “bittersweet”
APR 15, 2012
By  John Goff
Thomas J. Fontaine is stepping down from his post as head of defined-contribution investments at AllianceBernstein LP with plans to become a math teacher. “The time seems right,” he said, in an interview with InvestmentNews on Wednesday. “It's been a long time coming.” Mr. Fontaine, who has spent 12 years with AllianceBernstein and has 20 years of experience in the money management world, is parting ways with the firm during a pivotal time in the defined-contribution space. For instance, the firm is weeks away from taking its multi-insurer 401(k) guarantee live with a large retirement plan. That product combines target date funds, along with a guaranteed lifetime income stream that's backed by Axa Equitable Life Insurance Co., Lincoln Financial Group and Nationwide Life and Annuity Insurance Co. Mr. Fontaine, who is based in New York, will be leaving his post at the end of May and will move his family to the Denver area. He doesn't have a teaching degree, so he expects to be checking out private schools, particularly at the elementary or junior high school level. Teaching at the college level is also a possibility. Mr. Fontaine, who has a Ph.D. in computer science, noted that he had always wanted to teach and the success achieved by the firm's DC team will finally allow him to pursue that dream. “Had I left three years ago, even a year ago, it could've negatively impacted the DC business,” he said. “The DC team has done something pretty special, and as a result of the work on target date, custom target date and lifetime income, we've built this business to about $18 billion in assets.” “Right now it's a very exciting time for the [retirement industry],” Mr. Fontaine added. “It's bittersweet.” At AllianceBernstein, Seth Masters, chief investment officer of the defined- contribution operation and Mr. Fontaine's supervisor, will continue to oversee the DC team. He will take on Mr. Fontaine's responsibilities with respect to senior management and DC industry associations. DC team members Chris Nikolich, head of U.S. research and investment design; David Hutchins, head of U.K. research and investment design; Mark Fortier, head of product and partner strategy; and Joe Healy, head of client experience, will take on expanded roles. The structure of the organization will remain the same. Mr. Fortier and Mr. Healy will handle Mr. Fontaine's day-to-day responsibilities. News of the executive's departure was first reported by 401k Wire.

Latest News

No succession plan? No worries. Just practice in place
No succession plan? No worries. Just practice in place

While industry statistics pointing to a succession crisis can cause alarm, advisor-owners should be free to consider a middle path between staying solo and catching the surging wave of M&A.

Research highlights growing need for personalized retirement solutions as investors age
Research highlights growing need for personalized retirement solutions as investors age

New joint research by T. Rowe Price, MIT, and Stanford University finds more diverse asset allocations among older participants.

Advisor moves: RIA Farther hails Q2 recruiting record, Raymond James nabs $300M team from Edward Jones
Advisor moves: RIA Farther hails Q2 recruiting record, Raymond James nabs $300M team from Edward Jones

With its asset pipeline bursting past $13 billion, Farther is looking to build more momentum with three new managing directors.

Insured Retirement Institute urges Labor Department to retain annuity safe harbor
Insured Retirement Institute urges Labor Department to retain annuity safe harbor

A Department of Labor proposal to scrap a regulatory provision under ERISA could create uncertainty for fiduciaries, the trade association argues.

LPL Financial sticking to its guns with retaining 90% of Commonwealth's financial advisors
LPL Financial sticking to its guns with retaining 90% of Commonwealth's financial advisors

"We continue to feel confident about our ability to capture 90%," LPL CEO Rich Steinmeier told analysts during the firm's 2nd quarter earnings call.

SPONSORED How advisors can build for high-net-worth complexity

Orion's Tom Wilson on delivering coordinated, high-touch service in a world where returns alone no longer set you apart.

SPONSORED RILAs bring stability, growth during volatile markets

Barely a decade old, registered index-linked annuities have quickly surged in popularity, thanks to their unique blend of protection and growth potential—an appealing option for investors looking to chart a steadier course through today's choppy market waters, says Myles Lambert, Brighthouse Financial.