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.
Two separate reports suggest that public pension plans’ strict adherence to target allocations and corporate pension plans’ focus on bonds and de-risking their portfolios may be hindering potential performance.
In recent years, hedge funds have not assumed sufficient risk to deliver attractive performance, but Willis Towers Watson suggests new approaches they can take to remain relevant.
Performance is not sacrificed by investing in environmental, social and governance (ESG) investments, and plan sponsors and participants can align their financial goals with their values, a white paper argues.
The Defined Contribution Institutional Investment Association has issued a first-of-its-kind report about allocations in custom target-date funds (TDFs), and while plan sponsors' data is aggregated for the report, Joshua Dietch, from T. Rowe Price and a co-contributor to the research, said each plan has “unique rationales for doing what they did.”
“A big driver of the 2018 buy-out sales was a combination of mid- to large-PRT deals,” says Eugene Noble, research analyst, LIMRA Secure Retirement Institute. “We also saw two new insurance companies enter the PRT market this year.”
Fidelity finds some difference between how larger and smaller institutions plan to diversify.
Cerulli Associates points to active target-date fund (TDF) performance during market volatility and the ability to mitigate sequence of return risk for defined contribution (DC) plan participants as reasons to consider them.
While target-date funds (TDFs) are intended to automatically diversify retirement plan participants’ portfolios, Vanguard found nearly one-third mix TDFs with other investments and “are pursuing what appear to be reasonable diversification strategies.”