Additional conclusive information about environmental, social and governance (ESG) investment performance may help retirement plan sponsors be less wary about making ESG investment decisions.
Researchers argue that financial illiteracy impedes plan participants’ ability to determine how to invest their savings, and propose mandated employer-provided financial education to address limited employee financial literacy.
A previous Schwab analysis found retirement plan participants in advised self-directed brokerage accounts (SDBAs) displayed a more diversified asset allocation mix and had a lower concentration of assets in particular securities than those in non-advised accounts.
Both for novice individuals and sophisticated institutions, investor perceptions of preparedness for market turbulence can often differ from actual readiness.
Bob Browne, CIO at Northern Trust, argues that pension plan sponsors should not wait to de-risk their plans based solely on the assumption that interest rates will rise.
Making sure plan participants understand the positive aspects of volatility can help them avoid poor trading decisions during periods of negative returns.
Finding that most households own mutual funds in employer-sponsored retirement plans, the Investment Company Institute (ICI) looked into the factors considered when selecting mutual funds.
According to Northern Trust, Corporate Employee Retirement Income Security Act (ERISA) pension plans had the best first quarter on a relative basis, while the Wilshire Trust Universe Comparison Service shows Taft Hartley defined benefit (DB) plans, which had the largest allocation to U.S. equities, posted the highest Q1 gain.
For more than one year, 401(k) investors have been moving to safer investments, according to the Alight Solutions 401(k) Index.
This may expose participating governments to higher funding risks, FitchRatings says.
Morningstar observes more flows into target-date funds (TDFs) using collective investment trusts (CITs) and those investing in index mutual funds.
A Morningstar study says investors are paying almost half as much to own funds in 2018, compared to 2000.
The San Bernardino County Employees’ Retirement Association uses knowledge management and InvestTech to make better-informed portfolio rebalancing decisions.
Research from Morningstar finds most investors, across ages and genders, have clear preferences for environmental, social and governance (ESG) investment products, but another study suggests education is needed for them to actually invest in line with their beliefs.
An analysis from Morningstar suggests monitoring defined contribution (DC) plan fund menus can have a positive impact on performance, and investment management providers weigh in on how to determine when a fund change is needed.
In his experience leading Principal’s retirement income solutions business, Sri Reddy says, the No. 1 thing people get wrong about annuities is to say that purchasers of such products are investors.
Tontines are a type of historical annuity structure that was first put into well-documented practice as far back as the 1600s.
One firm, for example, plans to soon roll out multiple additional products to complement its two existing ESG-labeled strategies—next will come ESG approaches to global equity and global income.
Nearly 90% of the days in the quarter saw net trading activity favor fixed income, according to the Alight Solutions 401(k) Index.