Newsdash Insight on Plan Design & Investment Strategy from PLANSPONSOR
June 15th, 2018
Benefits & Administration
PSNC 2018: Retirement Security at an Inflection Point, Part 2
Building on his presentation from a year earlier, Joe Ready, head of Wells Fargo Retirement and Trust, outlined for attendees of the 2018 PLANSPONSOR National Conference, in Washington, D.C., the broad retirement security challenges faced by the U.S. work force—taking time to highlight the most effective efforts by defined contribution (DC) plan providers, sponsors and advisers to solve participants’ pressing issues. Ready pointed out that, while he has spent 20 years working on retirement security issues, the current environment is “easily the most dynamic and exciting that I have seen during my career.” Read more >
Fidelity Finds Little Knowledge About HSAs
Fidelity says that 25% of employees with access to a health savings account (HSA) are using one. When employers offer only an HSA-eligible health plan, 46% of workers add this savings benefit. However, Fidelity’s research also finds that, despite growth in HSA openings, many individuals are not making the most of the benefits these accounts can offer. Read more >
Products, Deals and People
Investment Products and Services Launches
Franklin Templeton creates additional active funds; Hartford Funds presents ETF focused on fixed income; First Trust introduces actively managed ETF; and more. Read more >
MOST READ ARTICLES
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HSA Amendment Bills Moved to U.S. House
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Retirement Industry People Moves
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Proposed Bill Would Allow Employers to Provide Side-Car Emergency Savings Accounts
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Missing Inaction
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2017 Recordkeeping Survey
Economic Events

The combined value of distributive trade sales and manufacturers’ shipments for April, adjusted for seasonal and trading-day differences but not for price changes, was estimated at $1,425.9 billion, up 0.4% from March and up 6.7% from April 2017, the Census Bureau reported.

 

Advance estimates of U.S. retail and food services sales for May, adjusted for seasonal variation and holiday and trading-day differences, but not for price changes, were $502.0 billion, an increase of 0.8% from the previous month, and 5.9% above May 2017. Total sales for the March through May period were up 5.2% from the same period a year ago. The March to April percent change was revised from up 0.2% to up 0.4%. Retail trade sales were up 0.8% from April, and 6.0% above last year. Gasoline Stations were up 17.7% from May 2017, while Nonstore Retailers were up 9.1% from last year.

 

In the week ending June 9, the advance figure for seasonally adjusted initial claims for unemployment insurance was 218,000, a decrease of 4,000 from the previous week’s unrevised level of 222,000, the Labor Department reported. The four-week moving average was 224,250, a decrease of 1,250 from the previous week’s unrevised average of 225,500.

 

The average interest rate for a 30-year fixed-rate mortgage is 4.62%, up from 4.54% one week ago, according to Freddie Mac. The average interest rate for a 15-year fixed-rate mortgage is 4.07%, up from 4.01%.

Sponsored message from Conning
Conning’s Annual Corporate Pension Review 2017 – A Year of Improvement. Read more >
Market Mirror

Thursday, the Dow was down 25.89 points (0.10%) at 25,175.31, the NASDAQ gained 65.34 points (0.85%) to finish at 7,761.04, and the S&P 500 was down 6.86 points (0.25%) at 2,782.49. The Russell 2000 closed 8.19 points (0.49%) higher at 1,684.72, and the Wilshire 5000 increased 82.46 points (0.28%) to 29,065.85.

 

The price of the 10-year Treasury note was up 8/32, decreasing its yield to 2.937%. The price of the 30-year Treasury bond increased 20/32, bringing its yield down to 3.055%.

Compliance
PSNC 2018: Washington Update
Jodi Epstein, a partner in Ivins, Phillips & Barker’s employee benefits practice, and David Levine, principal at Groom Law Group, Chartered, explain retirement-related developments in Washington, D.C., and state capitals across the U.S. at the PLANSPONSOR National Conference in Washington, D.C. Read more >
Investing
TDFs Have Helped Close the Investment Return Gap
Because of poor timing in purchasing and redeeming funds, investors tend to earn less than what the fund returns, Morningstar notes in a white paper. “Investors large and small tend to sell after downturns only to buy back after a rally,” the research firm says. “But remaining invested in target-date funds [TDFs] and benevolent market conditions have narrowed that gap.” Read more >
Small Talk

ON THIS DATE: In 1667, Jean-Baptiste Denys administered the first fully-documented human blood transfusion. He successfully transfused the blood of a sheep to a 15-year old boy. In 1775, George Washington was appointed head of the Continental Army by the Second Continental Congress. In 1836, Arkansas became the 25th U.S. state. In 1844, Charles Goodyear was granted a patent for the process that strengthens rubber. In 1846, the United States and Britain settled a boundary dispute concerning the boundary between the U.S. and Canada, by signing a treaty. In 1864, an order to establish a military burial ground was signed by Secretary of War Edwin M. Stanton. The location later became known as Arlington National Cemetery. In 1877, Henry O. Flipper became the first African American to graduate from the U.S. Military Academy at West Point. In 1898, the House of representatives approved the annexation of Hawaii. In 1944, American forces began their successful invasion of Saipan during World War II.

 

 

No FRIDAY FILES this week.

 

Have a great weekend!

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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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