Newsdash Insight on Plan Design & Investment Strategy from PLANSPONSOR
July 10th, 2017
Benefits & Administration
Part-Time Workers Are Financially Vulnerable
Only 32% of part-time workers indicate they have access to an employer-sponsored retirement plan, compared to 69% of full-time employees, according to a report from Guardian. As the nation moves more to a “gig” economy, the question becomes: How can we prepare part-time employees for a financially secure retirement? Read more >
Products, Deals and People
Retirement Industry People Moves
The Standard names Retirement Plan Services VP; Wells Fargo hires head of Portfolio Solutions; Cafaro Greenleaf expands Retirement Plans team; and more. Read more >
MOST READ ARTICLES
1
SECURE Act Passes House, Bringing Calls for Senate Collaboration
2
J.P. Morgan Agrees to Settle Stable Value Funds Suit
3
Individuals, Employers and Government All Play a Part in Retirement Readiness
4
Participant Loans: A Fiduciary Storm Brewing?
5
What to Know About Financial Audits Filed with Form 5500s
Economic Events

Total nonfarm payroll employment increased by 222,000 in June, and the unemployment rate was little changed at 4.4, according to the Bureau of Labor Statistics. Employment increased in health care, social assistance, financial activities, and mining.

THE ECONOMIC WEEK AHEAD: Tomorrow, the Census Bureau will report about wholesale trade for May. Thursday, the Labor Department will issue its initial claims report, and the Bureau of Labor Statistics (BLS) will reveal the producer price index for June. Friday, the BLS will reveal the consumer price index for June, and the Census Bureau will report about retail sales for June and business inventories for May.

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Market Mirror

Friday, the Dow gained 94.30 points (0.44%) to finish at 21,414.34, the NASDAQ closed 63.61 points (1.04%) higher at 6,153.08, and the S&P 500 was up 15.43 points (0.64%) at 2,425.18. The Russell 2000 increased 15.02 points (1.07%) to 1,415.83, and the Wilshire 5000 climbed 159.41 points (0.64%) to 25,219.16.

The price of the 10-year Treasury note was down 5/32, increasing its yield to 2.386%. The price of the 30-year Treasury bond decreased 17/32, bringing its yield up to 2.930%.

WEEK’S WORTH: For the week ending July 7, the Dow gained 0.30%, the NASDAQ finished 0.21% higher, and the S&P 500 increased 0.07%. The Russell 2000 was up 0.03%, and the Wilshire 5000 was down 0.04%.

From the Magazine
Insights: Informed Decisions
As valuable as research can be to give you directional guidelines about the challenges your employee group is facing, you know your workplace best and, therefore, the best way to engage your employees. You can understand their pain points by noting human resource (HR)’s challenges or by checking participant savings rates or by seeing what programs people request. All of these can shape your approach to helping tiny segments of each of the generations you employ. Read more >
Investing
Diversification Has Decreased at the Market Level
Pantheon has published an informative research paper that examines the “phenomenon and causes of shrinking public markets.” The research, “The Shrinking Public Market and Why it Matters,” is penned by Cullen Wilson, associate, and Brian Buenneke, partner. It warns in no uncertain terms that the number of publicly listed companies in the U.S. has roughly halved since 1996. Crucially, this trend has “spanned multiple economic cycles and has impacted countries across the globe,” the researchers explain, and as such they believe the phenomenon is likely to persist and have a significant impact on institutional investors. Read more >
AICPA Proposes Framework for Valuation of Certain Financial Instruments
Historically, financial instruments, such as mortgage-backed securities, credit default swaps, complex bonds and other derivatives, have been difficult to value, which has the potential to adversely impact markets and the global economy, the AICPA says. Read more >
Small Talk

ON THIS DATE: In 1776, the statue of King George III was pulled down in New York City. In 1778, in support of the American Revolution, France’s Louis XVI declared war on England. In 1821, U.S. troops took possession of Florida. The territory was sold by Spain. In 1890, Wyoming became the 44th state to join the United States. In 1913, the highest temperature ever recorded in the U.S. was 134 degrees in Death Valley, California. In 1919, the Treaty of Versailles was hand delivered to the U.S. Senate by President Woodrow Wilson. In 1938, Howard Hughes completed a 91 hour flight around the world. In 1949, the first practical rectangular television was presented. The picture tube measured 12 by 16 and sold for $12. In 1951, armistice talks aimed at ending the Korean conflict began at Kaesong. In 1953, American forces withdraw from Pork Chop Hill in Korea after heavy fighting. In 1962, the Telstar Communications satellite was launched. The satellite relayed TV and telephone signals between Europe and the U.S. In 1969, the National League was divided up into two baseball divisions. In 1997, scientists in London said DNA from a Neanderthal skeleton supported a theory that all humanity descended from an “African Eve” 100,000 to 200,000 years ago.

SURVEY SAYS RESPONSES: Last week, I asked NewsDash readers, “Do you own an annuity, and do you think individuals can have retirement income that lasts throughout retirement without owning an annuity?” Few (7.7%) respondents indicated they own an annuity within their employer-sponsored retirement plan, while 15.4% own one outside of their employer-sponsored retirement plan, and the majority (76.9%) do not own an annuity. Asked if they think individuals can have retirement income that lasts throughout retirement without owning an annuity, more than one-quarter (26.9%) said yes, while 11.5% said not, and 61.5% said it depends on their retirement savings situation. Among those respondents who chose to leave verbatim comments, the majority seemed to be pro-annuity, while a few offered insight into how to have retirement income that lasts without owning an annuity. A couple of respondents said annuities have fees that are too high, and several mentioned that a defined benefit (DB) plan is the best source of annuitized income for retirees. Editor’s Choice goes to the reader who said: “Defined Benefit plans are unequalled for providing lifetime income with maximum efficiency.” Thanks 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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