Newsdash Insight on Plan Design & Investment Strategy from PLANSPONSOR
November 19th, 2018

Last call for plan sponsors and advisers in San Francisco and Houston!

We’ve already had three successful Best of PSNC events, and are heading west after Thanksgiving. We’ll be talking about regulation and litigation, investment menu considerations, financial wellness, and QDIA considerations, among other topics in a concise half-day format. Join us next week in San Francisco and Houston for PLANSPONSOR’s final two conferences of 2018! Read more >
Investing
Fund Menus, Fee Structures Still Trending Toward Simplification
According to Jason Brafman, director at John Hancock Investments, defined contribution (DC) retirement plan sponsors continue to pare back their investment menus in the interest of making it easier for participants to build rational allocations. Brafman spoke on a panel with Vincent Smith, partner and senior consultant at Fiduciary Investment Advisors, during the Best of PSNC 2018 event in Boston. “The pendulum is still swinging back toward smaller fund lineups,” Brafman said. “The reason is because we know much more about analysis paralysis these days, and the popularity of offering an asset-allocation solution as the qualified default investment alternative [QDIAs] makes having a large number of funds unnecessary, frankly, and even potentially harmful for participant performance.” Experts offered tips for better analysis of investment and recordkeeping expenses. Read more >
Half of Americans Think Market Volatility Has Increased
Nearly half (48%) of Americans believe they are exposed to greater market risk today than they were before the 2008 financial crisis, Natixis Investment Managers learned in a survey of 750 investors. Nonetheless, Americans expect annual returns of 9.8%, which advisers say is significantly higher than what is realistic. Those who entered the financial markets think their returns should be 11.3% above inflation. “A decade of rising markets, low interest rates and subdued volatility may have given investors unreasonable expectations and a false sense of security,” says David Giunta, CEO for U.S. and Canada for Natixis Investment Managers. Read more >
MOST READ ARTICLES
1
IRS Announces 2019 HSA Contribution Limits
2
4% Rule Not a Reliable Retirement Income Withdrawal Strategy for All People
3
Lawsuit Argues MetLife Pension Calculations Use Outdated Mortality Table
4
Financially Well Employees Buoy the Bottom Line
5
401(k) Plan Sponsors Enhancing Plan Design
Products, Deals and People
Retirement Industry People Moves
Northern Trust adds industry veteran as director of public funds and Taft-Hartley plans; Edelman Financial Engines appoints former EBSA leader to board; Investment strategist joins FIA; and more. Read more >
Economic Events

THE ECONOMIC WEEK AHEAD: Tomorrow, the Census Bureau will report about housing starts for October. Wednesday, the Labor Department will issue its initial claims report, the Census Bureau will report about durable goods orders for October, and National Association of Realtors will report about existing home sales for October.

Sponsored message from Lincoln Financial Group
A commitment to financial wellness
Help plan participants reach greater financial wellness. Read more >
Market Mirror

Friday, the Dow rose 123.95 points (0.49%) to close at 25,413.22, the NASDAQ shed 11.16 points (0.15%) to finish at 7,247.87, and the S&P 500 ticked up by 6.07 points (0.22%) to close at 2,736.27. The Russell 2000 inched upward by 3.41 points (0.22%) to 1,527.53, and the Wilshire 5000 rose by 47.32 points (0.17%) to 28,206.18.

 

The price of the 10-year Treasury bond was up 12/32, decreasing its yield to 3.070%. The price of the 30-year Treasury bond was up 22/32, decreasing its yield to 3.325%.

 

WEEK’S WORTH: For the week ending November 16, 2018, the Dow lost 2.22%, the S&P 500 was down 1.61% and the NASDAQ declined by 2.15%. The Russell 2000 lost 1.42% of its value, and the Wilshire 5000 was down 1.61%.

Compliance
PBGC Fiscal Year 2018 Report Highlights
The pension insurance organization says the financial condition of both its single employer and multiemployer insurance programs have improved, but the latter program is still projected to be insolvent by 2025. Read more >
From the Magazine
ESG Diversification
A plan sponsor conducts an online RFP to help meet its mission. Read more >
Small Talk

ON THIS DATE: In 1863, President Abraham Lincoln delivered his Gettysburg Address as he dedicated a national cemetery at the site of the Civil War battlefield in Pennsylvania. In 1928, “Time” magazine presented its cover in color for the first time. The subject was Japanese Emperor Hirohito. In 1959, Ford Motor Co. announced it was ending the production of the unpopular Edsel. In 1969, Apollo 12 astronauts Charles Conrad and Alan Bean made man’s second landing on the moon. In 1984, Dwight Gooden, 20-years-old, of the New York Mets, became the youngest major-league pitcher to be named Rookie of the Year in the National League of Major League Baseball. In 1985, President Ronald Reagan and Soviet leader Mikhail S. Gorbachev met for the first time as they began their summit in Geneva. In 1998, the impeachment inquiry of President Bill Clinton began. In 2001, President George W. Bush signed the most comprehensive air security bill in U.S. history. In 2002, the U.S. government completed its takeover of security at 424 airports nationwide. In 2007, the Amazon Kindle was first released.

SURVEY SAYS RESPONSES: Last week, I asked NewsDash readers, “Does your company do anything for employees for Thanksgiving?” Respondents could select all that apply. The majority of responding readers (70.2%) indicated their employer gives them not only Thanksgiving Day off, but also the day after. More than one-third (34%) said there employer does nothing. Employers host a potluck meal for (12.8%) of respondents, 6.4% said they get a turkey, ham or some other gift, and 4.3% said they participate in a charity effort. In verbatim comments from readers, some detailed special things their company or office does for Thanksgiving. Other perks were listed, such as free lunches and leaving early the day before Thanksgiving. Editor’s Choice goes to the reader who said: “I’m really appreciative of the day after Thanksgiving off. Seems like after all the dinner prep and eating, I need a day of rest lol.” Thanks to all who participated in the survey, and I hope you all have a great Thanksgiving! 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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