Education and Transparency Two Issues for CIT Use in DC Plans
Anya Krymkowski, with Cerulli, says plan sponsors can negotiate with CIT providers to receive more information on the trusts, thereby addressing the transparency issue.
Investing
Litigators Share What They Investigate for Filing TDF Lawsuits
A litigation firm has listed what it is investigating for potential lawsuits over target-date funds (TDFs) in retirement plans, and an ERISA attorney makes suggestions for how plan...
Participants’ Posture on ESG Investing Not Showing in Retirement Plans
The sentiment for ESG investing is positive among all generations though their actions in retirement plans don’t show it. How should plan sponsors fit ESG into the investment...
Caution Warranted When Tying Yield Curve Inversions to Recession
One expert suggests the current yield curve inversion—often called a harbinger of recession—is due more to declining inflation expectations and the weight of negative bond yields in Europe.
403(b) Plan Sponsors Have Taken Steps to Prepare for Market Volatility
An analysis from the 2019 BlackRock DC Pulse survey compares investment preferences of 403(b) and 401(k) plan sponsors and also highlights 403(b) plan sponsors’ focus on retirement income...
Few 401(k) Participants Make Trades in July
Year-to-date, investors have favored fixed income on 186 trading days, or 86% of the trading days available, according to Alight Solutions.
Explaining the ‘New Normal’ for Interest Rates
"The new normal for interest rates simply means that retirement investors have to take more risk,” says Steve Foresti, CIO at Wilshire Consulting.
Participants, Plans Already Feeling the Impact of U.S-China Trade War
Until recently, the marketplace expected the U.S. and China would, year over year, continue to integrate and overlap their economic systems. Increasingly, it seems the two spheres are...
An Investing Strategy to Improve Church and Public DB Plan Funding
Currently church and public defined benefit (DB) plans focus more on returns, and their funded status is lower than for corporate plans, River & Mercantile notes in a...
Participants Display a Variety of Risk Biases, Damaging Outcomes
Common biases impacting retirement plan investors include the availability bias, belief perseverance bias, confirmation bias, herding bias and more.
401(k) Investors’ Move to Fixed Income Continues in June
Alight Solutions says the steady stream of trades in one direction made for the heaviest quarter of net trading since the third quarter of 2016.
Plan Sponsor Investment Considerations for Second Half of 2019
Defined benefit (DB) and defined contribution (DC) plan sponsors are expected to have to navigate a more volatile market environment in the second half of the year.
Use of Index Funds in 401(k)s Increasing
The use of index funds by plans in the BrightScope Defined Contribution Plan Database increased from 79% of plans and 16.7% of assets in 2006 to 91.3% of...
Study Suggests Irrational Investing Behavior Across Demographics
In a study by the TIAA Institute asking subjects to make decisions resembling portfolio allocations, researchers found those with more financial education made more rational decisions.
401(k) Participant Transfers Increase in May
Falling equity returns accelerated the trend this year of participants moving into fixed income investments, according to Alight Solutions.
PSNC 2019: DC Investment Ideas, ESG and CITs
Panelists at the 2019 PLANSPONSOR National Conference discussed the risk-reduction and performance benefits that ESG can bring and that certain challenges associated with the use of CITs by...
The Importance of Rebalancing DC Plan Portfolios
Once they select the proper asset allocation for their retirement savings, defined contribution (DC) plan participants need to be prodded to rebalance their portfolios regularly to maintain the...
PSNC 2019: What Comes Next With Retirement Income
The growing landscape of decumulation solutions includes in-plan insurance products, managed payout funds, managed accounts, out-of-plan annuity windows and more.
Alternative Assets Can Help With Derisking DB Plans
A Cerulli Associates report explains how different alternative investments can help a derisking defined benefit (DB) plan with liability hedging as well as risk-seeking.