Investing

Continued net flows out of the DC system, driven by Baby Boomer retirements, could cause more provider consolidation and redoubling of efforts by recordkeepers to keep assets in DC plans. 

Charles Schwab’s 2019 forecast does not suggest long-term investors should rotate their portfolios away from risky assets, but investors should be more thoughtful about the growth assets they hold.

Asked about what Putnam has seen develop this year in terms of environmental, social and governance investing programs, and about how “ESG” fits into the discussion of active and passive management, Putnam Investments CEO Bob Reynolds had a lot to say.

Most 401(k) trading in the month favored fixed income investments.

The top economists at J.P. Morgan Asset Management and Vanguard remind investors that volatility is normal, and that long-term thinking is a solution to short-term stress about equity prices.

They also expect the bull market will end in the coming year.

Among participants using an adviser on their self-directed brokerage account in Q3, 45% were Baby Boomers, similar to Gen X; just 8.5% were Millennials, according to Charles Schwab.

By comparison, the majority of mutual fund investing for Baby Boomers is outside of an employer-sponsored retirement plan, Investment Company Institute data shows.

According to a nationwide survey from Schwab Stock Plan Services, equity compensation accounts on average for nearly 30% of employees’ net worth, and almost three-quarters of employees surveyed also own company stock outside of their equity compensation plan.

Experts at the Best of PSNC 2018 event in Boston reviewed plan sponsors’ use of different fund types and fee structures, offering up tips for better analysis of investment and recordkeeping expenses.

And a majority, 65%, say it is tougher now to get ahead financially than it was before the financial crisis, Natixis found in a survey.

They are focused on reducing risk, which Connecticut State Treasurer Denise L. Nappier says is a priority for institutional investors who have a fiduciary obligation to invest pension assets prudently and to monitor and manage risks.

What would encourage more ESG offerings in retirement plans?

For the year ended September 30, they are up 6.90%, according to the Wilshire Trust Universe Comparison Service.

BNY Mellon says higher allocations to U.S. equity drove outperformance as U.S. fixed income sustained its streak as the lowest performing asset class.

Fifty-five percent of U.S. investors have their global equity allocation in active, alpha-seeking strategies, and the planned allocation to these strategies in three years is 61%, research found.

After several weeks of relatively large price swings for major equity market indices, 401(k) trading activity jumped on Monday, October 29.

J.P. Morgan anticipates labor supply constraints in developed countries starting in the next decade; while global growth expectations are modestly good, the firm urges policymakers to consider the importance of immigration when it comes to fueling future growth.

Corporate ERISA plans, at 1.9%, trailed behind other institutional investors due to their allocation towards longer duration fixed income. Despite this lag, Northern Trust overall marks the performances as optimistic.

Continuing a trend that began in 2012, criteria related to climate change and carbon emissions remained the most important environmental issue for U.S. institutional investors.