Institutional investors with less than $1 billion in assets paid 65% more for investment management than medium-size funds ($1 billion to $10 billion in assets) and 91% more than the largest funds (greater than $100 billion in assets), Callan found.
Callan says this is partly due to multiple years of investor education around ESG coming to fruition.
The committee is staffed with a diverse group of outside experts, including individuals representing the views of retail and institutional investors, small and large issuers, trading venues, dealers, and self-regulatory organizations, among others.
“Saving more is the most obvious and effective way to improve retirement outcomes," J.P. Morgan experts say.
Among tips Mercer suggests is evaluating litigation vulnerability at a time when lawsuits against higher education 403(b) plan sponsors are higher than ever.
“A bad day in 2017 was a flat day,” says Bob Doll, chief equity strategist at Nuveen Asset Management. “Turning to 2018 we can be quite optimistic once again, but even so, we have to keep in mind that 2016 and 2017 were not normal.”
An analysis from Mayer Brown LLP attorneys offers helpful guidance for retirement plan fiduciaries thinking about making changes to their stable value or money market funds in 2018.
Recent discussion among Federal Reserve Board members has brought into question the transitory nature of the current lower level of inflation, says Matt Toms, Voya Investment Management’s chief investment officer for fixed income.
“Investors could benefit enormously from a compact and timely disclosure document that they actually look at and understand,” said SEC Commissioner Kara Stein.
With a new Fed chair and expectations for rising rates, 2018 will be a year to focus on fixed income portfolios.
Cerulli Associates suggests that if retirement plan sponsors position managed accounts as a valued service it could alleviate concerns about costs.
Respondents to a recent survey broadly use multiple benchmarks and measures to assess multi-asset fund performance, with around three selected on average; this runs the risk of investors losing sight of the primary goal, potentially leading to disappointment.
Fifty-two percent of defined contribution retirement plan sponsors offer money market funds as capital preservation options, down from 62% in 2015.
Sixty-two percent say they need better tools to manage the risks associated with these asset classes.
Eighty-one percent of pension plan professionals say funded status volatility is their top motivating factor for pursuing an LDI strategy.
A report from Cerulli Associates states the primary reason an institutional investor seeks out a CIT is the fact that it can often gain more favorable pricing compared to using other vehicles.
Cerulli even expects environmental, social and governance investing to become "the baseline of how portfolios are constructed."
However, the increasing “narrowness” of the sources of return in broad market indexes is concerning to MFS experts.
Findings suggest the opportunity is ripe for smart beta ETF products, but more industry education is needed.
With strong November returns, the Wilshire 5000 U.S. equity index extended an unprecedented run of consecutive monthly gains.