Newsdash Insight on Plan Design & Investment Strategy from PLANSPONSOR
May 23rd, 2017
Benefits & Administration
People With Student Loans Have Trouble Saving for Retirement
A crushing load of student debt is preventing young people from saving for retirement, Prudential Financial found in a survey of 2,369 people last September. Forty percent said this debt is forcing them to delay saving for retirement. Read more >
Investors Working on Overall Financial Wellness
The majority of investors already follow a number of basic steps that contribute to overall financial health, according to the Wells Fargo/Gallup Investor and Retirement Optimism Index. However, two practices prove more challenging for investors: contributing to an emergency fund and saving at least 10% for retirement. Read more >
MOST READ ARTICLES
1
The Senate Math That Could Block SECURE Act
2
House Committee Advances Bill to Establish Union Pension Lifeline Program
3
Open MEPs Not for Every Plan Sponsor
4
Driving Financial Wellness at Work
5
Pension Participants Claim ERISA Breaches in Dow DuPont Pension Transfer
Market Mirror

Yesterday, the Dow was up 89.99 points (0.43%) at 20,894.83, the NASDAQ closed 49.91 points (0.82%) higher at 6,133.62, and the S&P 500 increased 12.29 points (0.52%) to 2,394.02. The Russell 2000 closed 5.64 points (0.41%) lower at 1,377.13, and the Wilshire 5000 gained 156.85 points (0.63%) to finish at 24,919.20.

The price of the 10-year Treasury note was down 5/32, increasing its yield to 2.253%. The price of the 30-year Treasury bond decreased 8/32, bringing its yield up to 2.910%.

Sponsored message from Natixis
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Compliance
Attorney Describes What Makes a Good ESOP Candidate
One experienced benefits attorney says he has seen employee stock ownership plans do a whole lot of good for a lot of people during the course of his career—and he wants to see more. Read more >
Investing
Mutual Fund Expenses Continue Downward Trend
The average expense ratios of long-term mutual funds declined in 2016, continuing a two-decade downward trend, the Investment Company Institute (ICI) reports. In 2016, investors paid, on average, 39% less for equity mutual fund expense ratios than in 1996—reflecting investor interest in lower-cost funds, industry competition, and economies of scale driven by asset growth, ICI says. Read more >
Active Fixed Income Could Be Useful in Rising Interest Rate Environment
In light of looming interest rate hikes, PIMCO suggests the current environment could make active fixed income strategies more lucrative. Even though several plan sponsors are moving away from active management to avoid high fees particularly with stocks, the firm notes that bonds are different. Read more >
Institutional Asset Owners Increasingly Interested in Smart Beta
FTSE Russell has found a new high in global smart beta index adoption and continued strong interest in smart sustainability and multi-factor indexes from global institutional asset owners. The global research team at FTSE Russell confirms that the percentage of asset owners reporting an existing smart beta index allocation has reached a new peak of 46%. Results from this year’s survey also detail strong interest in applying environmental, social and governance (ESG) considerations to smart beta. Read more >
Small Talk

ON THIS DATE: In 1785, Benjamin Franklin wrote in a letter that he had invented bifocals. In 1788, South Carolina became the eighth state to ratify U.S. Constitution. In 1876, Boston’s Joe Borden pitched the very first no-hitter in the history of the National League. In 1879, the first U.S. veterinary school was established by Iowa State University. In 1895, the New York Public Library was created with an agreement that combined the city’s existing Astor and Lenox libraries. In 1900, Civil War hero Sgt. William H. Carney became the first African American to receive the Medal of Honor, 37 years after the Battle of Fort Wagner. In 1934, in Bienville Parish, Louisiana, Bonnie Parker and Clyde Barrow were ambushed and killed by Texas Rangers. The bank robbers were riding in a stolen Ford Deluxe. In 1937, industrialist John D. Rockefeller died. In 1949, the Republic of West Germany was established. In 1999, Gerry Bloch, at age 81, became the oldest climber to scale El Capitan in Yosemite National Park. He broke his own record that he set in 1986 when he was 68 years old.

TRIVIAL PURSUITS: If you headed due south from Detroit, Michigan, which foreign country would you reach first? 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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