Investing

Experts say optimal allocations can help corporate defined benefit plan sponsors match their assets and liabilities.

Participant trading remained limited in both September and the year’s third quarter overall, favoring fixed income.

Speakers discussed which demographics might be best suited for solutions more personalized than the average target-date fund.

Experts say plan sponsors should do their due diligence to understand and compare key aspects of each investment vehicle and their underlying investments.

Speakers discussed which private assets could best be incorporated into defined contribution plans and through what vehicles they should be implemented.

Only 40% of plan participants surveyed knew exactly how their retirement savings were invested.

Plan sponsors can take a ‘measured risk’ approach to evolving their investment menus, according to one panelist.

Growing at the fastest rate since 2017, the 300 largest funds worldwide now manage a record $27.7 trillion, according to a WTW's Thinking Ahead Institute. 

The $73.6 billion retirement firm is adding wealth services in response to feedback from plan participants.

The manager will take over investment of $70 billion in defined benefit and defined contribution plan investments. 

Despite a strong month for equities, participants reduced equity exposure and redirected allocations into fixed income, according to Alight.

Advisers and providers praised top target-date funds but said personalized investing is on the horizon for defined contribution plans.

Despite geopolitical uncertainty and market volatility, most retirement plan investors took a ‘long-term, buy-and-hold approach’ in April, according to Alight.

While the Department of Labor estimated a $178 billion inflow to target-date funds based on its proposed safe harbor, plan sponsors seem lukewarm so far.

The Department of Labor’s $178 billion-per-year estimate would mean private assets make up nearly 3.7% of target-date funds, the dominant investment in defined contribution plans.

Experts shared mixed forecasts of the speed of adoption of private market assets in defined contribution retirement plans.

The 100 largest public defined benefit plans in the U.S. lost 3.5% on their investments in March, sending funded ratios sharply lower, according to Milliman. 

The new rule outlines fiduciary standards while allowing limited use of private markets in diversified funds.

As the push for alternatives continues, much is left to be worked out, experts say.

Once home to the pioneering Wilshire 5000 stock market gauge, the index provider failed to challenge dominant firms like MSCI and FTSE Russell.