Newsdash Insight on Plan Design & Investment Strategy from PLANSPONSOR
August 13th, 2018
Investing
GAO Explores Why Few Retirement Plans Embrace ESG Investing
The Government Accountability Office (GAO) says in other cases where plans may face complexity, such as selecting a target-date fund or monitoring pension consultants, the Department of Labor (DOL) has provided general information, including items to consider and questions to ask. It suggests that the DOL do the same with environmental, social and governance (ESG) investing. Read more >
SSGA Eliminating A Shares for Target Retirement Funds
In a prospectus supplement filed with the Securities and Exchange Commission (SEC), State Street Global Advisors (SSGA) announced that effective upon the close of business on September 4, Class A shares of the State Street Target Retirement Funds will be closed to purchases by new shareholders. According to the filing, effective on or about October 12, all existing Class A shares of each fund will be combined with Class I shares of the same fund. In a previous filing, the firm also announced waivers for A, I and K share classes of its Target Retirement fund series. SSGA is following the trend of providers lowering investment fees, and sees an opportunity to attract 403(b) plan sponsors, according to Greg Porteous, head of defined contribution intermediary distribution at the firm. Read more >
Products, Deals and People
Retirement Industry People Moves
Principal hires SVP for Retirement and Income Solutions Group; America’s Best 401k creates Board of Advisors to combat high fees; USI Consulting names Retirement Services VP; and more. Read more >
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2019 PLANSPONSOR National Conference
Economic Events

In July, the Consumer Price Index for All Urban Consumers (CPI-U) increased 0.2% seasonally adjusted (SA); rising 2.9% over the last 12 months, not seasonally adjusted (NSA), the Bureau of Labor Statistics reports. The index for all items less food and energy rose 0.2% in July, SA; up 2.4% over the year, NSA.

 

Real average hourly earnings were unchanged over the month in July, SA. Average hourly earnings increased 0.3% and CPI-U increased 0.2%. Real average weekly earnings decreased 0.2% over the month.

 

THE ECONOMIC WEEK AHEAD: Wednesday, the Census Bureau will report about retail sales in July and business trade in June. Thursday, the Labor Department will issue its initial claims report, and the Census Bureau will report about housing starts in July.

Sponsored message from MetLife
MetLife’s Roberta Rafaloff Discusses How Plan Design Can Lead to More Successful Retirement Outcomes. Read more >
Market Mirror

Friday, the Dow fell 196.09 points (0.77%) to 25,313.14, the NASDAQ closed 52.67 points (0.67%) lower at 7,839.11, and the S&P 500 lost 20.30 points (0.71%) to finish at 2,833.28. The Russell 2000 was down 4.08 points (0.24%) at 1,686.80, and the Wilshire 5000 decreased 180.62 points (0.61%) to 29,566.85.

 

The price of the 10-year Treasury note increased 15/32, bringing its yield down to 2.872%. The price of the 30-year Treasury bond climbed 1 0/32, decreasing its yield to 3.034%.

 

WEEK’S WORTH: For the week ending August 10, the Dow lost 0.59%, the NASDAQ finished 0.35% higher, and the S&P 500 decreased 0.25%. The Russell 2000 climbed 0.80%, and the Wilshire 5000 was up 0.04%.

Compliance
PIMCO Excessive Compensation Lawsuit Dropped
A lawsuit claiming the excessive compensation received by PIMCO officers through the PIMCO Total Return Fund was so disproportionately large that investment returns suffered has been dismissed, with the withdrawal of all pending motions. The lawsuit called into question compensation paid to former co-chief investment officers and co-chief executive officers Mohamed El-Erian and William H. Gross, among others. According to the complaint, as the increase in assets in the fund led to larger and larger amounts of compensation being paid to the PIMCO, the fund’s performance suffered. In addition to the parties agreeing to withdraw from the court’s consideration their pending cross-motions for summary judgment and all briefing, declarations, exhibits, and supporting materials offered in support of their motions, PIMCO has requested that a number of documents remain sealed and not be open to the public by the court. Read more >
From the Magazine
Simple Steps to Offering Student Loan Repayment Benefits
According to industry specialists, the first step to rolling out a student loan repayment program is simply to conduct research and collect some preliminary data—the goal being to reach a better understanding of one’s work-force student loan debt burden. Read more >
Small Talk

ON THIS DATE: In 1521, present-day Mexico City was captured by Spanish conqueror Hernando Cortez from the Aztec Indians. In 1876, the Reciprocity Treaty between the U.S. and Hawaii was ratified. In 1889, a patent for a coin-operated telephone was issued to William Gray. In 1931, the first community hospital in the U.S. was dedicated in Elk City, Oklahoma. In 1934, Al Capp’s comic strip “L’il Abner” made its debut in newspapers. In 1942, Walt Disney’s “Bambi” opened at Radio City Music Hall in New York City. In 1960, “Echo I,” a balloon satellite, allowed the first two-way telephone conversation by satellite to take place. In 1961, Berlin was divided by a barbed wire fence to halt the flight of refugees. Two days later work on the Berlin Wall began. In 1994, it was reported that aspirin not only helps reduce the risk of heart disease, but also helps prevent colon can.cer.

SURVEY SAYS RESPONSES: Last week, I asked NewsDash readers, “Are you happy with your work-life balance, and who do you think is responsible for your level of work-life balance?” The majority of responding readers (59.3%) are happy with their work-life balance, while 22.2% said they are “somewhat” happy, and 18.5% reported they are not happy with their work-life balance. Seven in 10 (70.4%) of respondents agreed with the statement, “Both my employer and I could make changes to improve my work-life balance.” However, 22.2% indicated only they could make changes to improve their work-life balance, and 7.4% said only their employer could do so. In comments left by respondents, several said work-life balance is harder to achieve with technology making employees easier to reach all the time. Some explained how creating a better work-life balance helped them with stress and work productivity. Others attributed their lack of work-life balance with too much work to get done and even a Type A personality. Editor’s Choice goes to the reader who said, “Work-life balance can be facilitated by the employer but can only be achieved by the employee.” Thank you to all who participated in the survey! Read more >
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Editorial: Alison Cooke Mintzer alison.mintzer@strategic-i.com

Advertising: Paul Zampitella paul.zampitella@strategic-i.com

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