Improving Participant Outcomes With Custom TDFs
Off-the-shelf TDFs may not meet the needs of participant demographics, so plan sponsors can build custom TDFs to provide greater diversification and less risk near retirement.
Investing
Will ‘Whiplash’ Volatility Continue in Q3? Most Likely.
The global equity markets dropped by about 20% during the first quarter before snapping back in the second. Analysts are pondering what comes next.
Do Standard Glide Path Illustrations Obscure Key Information?
The minimum and maximum fixed-income allocations of 2050 target-date funds range between 1.5% and 19.9%, respectively, according to MFS.
Self-Directed 401(k) Participants Also Increased Trading in Q1 2020
The average Charles Schwab self-directed brokerage account balance was down 14% from the end of 2019, and those participants who used advisers displayed a more diversified asset allocation...
Retirement Tier Widely Recommended for DC Plans
A retirement tier is a range of products, solutions, tools and services to support participants who are near, entering or in retirement.
A Reality Check for the Equity Markets
Recent volatility has left the equity markets “looking a bit more in touch with the economic reality than they were a week ago,” one commentator says.
The Role of Stable Value in Each Stage of the Savings Journey
Stable value has an important combination of benefits for participants nearing retirement, but it can play a role for participants who are building their savings as well.
Private Equity in DC Plans an Opportunity to Improve Outcomes
Plan sponsors should follow prudent processes the DOL laid out in its recent guidance, and there are already solutions in place to help them figure out how to...
Promising Investment Opportunities Exist
Small-cap stocks and distressed debt are among places investment managers said investors should turn in the post-COVID-19 environment.
The Next Evolution in 403(b) Plans: Investments
While 403(b) plans have made great strides, lifting restrictions on the types of investments the plans can offer and considering more diverse investment types could further improve participant...
Pandemic Shines a New Light on Climate Change and ESG Investing
The COVID-19 crisis is showing plan sponsors how corporate behaviors affect the environment and that encouraging positive ones with investment dollars can benefit participants as well.
Rethinking Portfolio Strategies for DB Plans
What strategies should plan sponsors consider for reaching their goals in the new market environment?
Like U.S. Corporations, U.S. Nonprofits Remain Shy About ESG Investing
Even in very mission-driven organizations, there is enough diversity of opinion to make consensus on how to define environmental and social responsibility quite difficult.
QDIAs the Best Place for Participant Assets During Downturns
QDIAs keep DC plan participants on a path for growth, but the current market volatility plants seeds of new ideas about their construction going forward.
Prudent Investment Review Processes Need Not Change During Volatility
However, serious downturns can reveal risks plan sponsors didn’t know they had.
Market Conditions Highlight Individual Investor Interest Rate Risk
Long a challenge associated with pensions, defined contribution plan investors find themselves grappling with the challenges of interest rate risk amid the coronavirus pandemic.
Current Volatility Shows Weaknesses in TDFs
Lessons about diversification—especially for those nearest retirement—not learned during the Great Recession will be a focus for plan sponsors and TDF providers now.
Fixed Income Allocations Suppressed Potential Losses for ERISA Pension Plans
Of the three institutional segments tracked by Northern Trust, corporate ERISA pension plans performed the best during 1Q 2020.
Participants See the Benefits of Diversification Amid Pandemic
First quarter performance data shows well designed defined contribution retirement plans are doing a decent job at protecting the savings of working Americans relative to retail brokerage accounts.
Money Manager’s COVID-19 Message: Stay the Course
“Rather than panic and act on their emotions, the vast majority of participants allowed their DC plans to do the job they were meant to do,” says Katherine...