 |
|
|
|
| Report Suggests DC Plans at Least as Efficient as DBs | |
| A Civic Report published by the Manhattan Institute aims to refute earlier studies that find defined benefit (DB) plans are more cost-effective for state and local governments than defined contribution (DC) plans. “Claims of the superior efficiency of DB plans—underpinned by false assumptions and a neglect of pension debt as a significant cost driver—are not supported by empirical evidence,” writes Josh B. McGee, senior fellow at the Manhattan Institute, in “Defined-Contribution Pensions Are Cost-Effective.” Read more > | |
| The Aon Hewitt 401(k) Index shows there were actually zero days of above-normal participant trading activity during July—making it the first month with no above-normal trading days since August 2014. Aon Hewitt says just 0.021% balances transferred each day. Among the 22 trading days in the month, the index reveals 12 had more money flow into fixed income than equities.Read more > | |
| Considering Public Plans for Private-Sector Workers | |
| At the White House Conference on Aging earlier this year, President Obama announced that, by the end of the year, the Department of Labor (DOL) will publish a proposed rule clarifying how states can move forward in creating retirement plans for private-sector workers. The guidelines need to clear a few hurdles, says Fredrik Axsater, head of global defined contribution (DC) at State Street Global Advisors (SSGA).Read more > | |
| Products, Deals & People | |
| ICMA-RC recently enhanced its mobile application for public-sector retirement plan participants, making it easier for them to conduct transactions and access financial education and tools from their mobile devices.Read more > | |
| Market Mirror | |
Yesterday, the Dow was up 67.78 points (0.39%) at 17,545.18, the NASDAQ gained 43.46 points (0.86%) to finish at 5,091.70, and the S&P 500 increased 10.90 points (0.52%) to 2,102.44. The Russell 2000 climbed 12.40 points (1.02%) to 1,225.09, and the Wilshire 5000 closed 131.89 points (0.60%) higher at 22,141.65. On the NYSE, 3.2 billion shares traded, and on the NASDAQ, nearly 2.8 billion shares changed hands, with 1.6 advancing issues for each declining issue on both exchanges. The price of the 10-year Treasury note was up 8/32, decreasing its yield to 2.170%. The price of the 30-year Treasury bond increased 17/32, bringing its yield down to 2.818%. | |
| Compliance | |
| Investment Manager Liable for Not Diversifying Plan Assets | |
| A federal district court has determined that an investment management firm and its only executive officer are liable for losses suffered by defined contribution (DC) plans as a result of non-diversification. The court ordered the investment manager to pay the plans $9,710,438, including disgorgement of the $110,438 paid in investment management fees during the period, plus $5,305,889.74 as prejudgment interest. U.S. District Judge Laura Taylor Swain of the U.S. District Court for the Southern District of New York found that the retirement plans’ investment committee did all it could do to try to get the investment manager to diversify investments.Read more > | |
| Investing | |
| International Equity funds led mutual fund inflows again in July, according to Strategic Insight, an Asset International company. Monthly outflows from U.S. Equity funds totaled $12.1 billion, yet Strategic Insight says fund returns by asset class were led by U.S. Equity.Read more > | |
| Small Talk | |
ON THIS DATE: In 1590, John White, the governor of the Roanoke Island colony in present-day North Carolina, returned from a supply trip to England to find the settlement deserted. In 1920, the 19th Amendment to the Constitution, guaranteeing women the right to vote, was ratified. In 1966, the first pictures of earth taken from moon orbit were sent back to the U.S. In 1979, Chic’s “Good Times” hit No. 1 on the U.S. pop charts. In 1992, celebrated Boston Celtics forward Larry Bird retired. In 1997, Patrick Swayze received a star on the Hollywood Walk of Fame.
TUESDAY TRIVIA: Captain Hanson C. Gregory is credited with coming up with the idea of putting a hole in the middle of doughnuts. | |
| TRIVIAL PURSUITS: Only since the 1980s have telefacsimile (fax) machines become standard office equipment, but versions of it have been around for more than a century. Do you know when the first fax machine was invented?Read more > | |
| Share the good news with a friend! Pass the Dash along – and tell your friends/associates they can sign up for their own copy.Read more > |
|
|
|
Editorial: Alison Cooke Mintzer alison.mintzer@strategic-i.com
Advertising: advertise@strategic-i.com
Subscribe to NEWSDash, click here .
To unsubscribe, click here.
|
BrightScope /
CIO /
FWW /
Investor Economics /
LiquidMetrix /
Market Metrics /
Matrix Solutions /
PLANADVISER /
Plan For Life /
PLANSPONSOR /
Simfund |