Newsdash Insight on Plan Design & Investment Strategy from PLANSPONSOR
November 25th, 2015
Benefits & Administration
Participants Stay the Course with Saving and Investing
Defined contribution (DC) retirement plan participants remain committed to saving, the Investment Company Institute (ICI) found through its analysis of plan recordkeeping data covering more than 26 million participants. In the first half of the year, only 1.8% stopped contributing to their DC plans, compared with 2.1% in the first half of 2014. Participants also stayed the course with their asset allocations.Read more >
Mobile Offerings for Participants Increasing
Retirement plan providers continue to place more emphasis on their mobile presence, according to Corporate Insight’s latest Retirement Plan Monitor report update. In the past year, providers have launched new phone apps, tablet apps and revamped mobile sites.Read more >
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Settlement Reached in Insperity 401(k) Excessive Fee, Self-Dealing Suit
DC Participant Loan Takers Go on to Save Less
Earlier this year Fidelity reviewed loan and withdrawal activity among 21,200 retirement plans and 13.5 million participants, finding loans are often viewed as an unavoidable financial necessity for those taking them. Part of what makes taking loans harmful for the long-term is that those who take one loan are likely to take at least one more in the future. In addition, Fidelity finds borrowers tend to save less on average over time after their first loan.Read more >
Economic Events
The Conference Board Consumer Confidence Index, which had decreased moderately in October, declined further in November. The Index now stands at 90.4 (1985=100), down from 99.1 in October. The Present Situation Index decreased from 114.6 last month to 108.1 in November, while the Expectations Index declined to 78.6 from 88.7 in October.
Sponsored message from Wells Fargo
PLANSPONSOR interviews Joe Ready
Stephen Moylan interviews Joe Ready, EVP at Wells Fargo Institutional Retirement and Trust. Ready discusses the evolution of 401(k) plans and the future of retirement planning.Read more >
Market Mirror

Yesterday, the Dow closed 19.51 points (0.11%) higher at 17,812.19, the NASDAQ was virtually unchanged at 5,102.81, and the S&P 500 was up 2.58 points (0.12%) at 2,089.17. The Russell 2000 increased 8.46 points (0.72%) to 1,188.81, and the Wilshire 5000 gained 45.75 points (0.21%) to finish at 21,719.71.

On the NYSE, 3.2 billion shares changed hands, with 1.6 advancing issues for every declining issue. On the NASDAQ, 2.7 billion shares traded, with a 1.4 to 1 ratio of advancers to decliners.

The price of the 10-year Treasury note increased 2/32, bringing its yield down to 2.232%. The price of the 30-year Treasury bond decreased 5/32, pushing its yield up to 3%.

From the Magazine
Strategic Insights Quarterly TDF Analysis
On a weighted average basis, target-date funds (TDFs) experienced losses of 6.2% during the third quarter. One-year trailing returns were also down, at -2.0%. What was the main driver of losses?Read more >
Investing
More Institutional Investors Using ESG Factors
The number of U.S. institutional investors that incorporate environmental, social and governance (ESG) factors into investment decisionmaking increased from 22% in 2013 to 29% in 2015, according to results of a Callan survey. However, among all fund types, there was no increase in ESG use in corporate retirement plans from 2013 to 2015. A separate survey of Callan’s proprietary investment manager database found 14% of all products in its database utilize ESG in investment decisions.Read more >
Small Talk
Many workers will spend Thanksgiving with their coworkers, and half will use time at work to shop online. One in five workers (20%) say they plan to celebrate Thanksgiving with coworkers either in or out of the office this year, on par with last year (19%), according to a CareerBuilder poll of 3,600 workers. The health care industry has the highest percentage of workers that will be spending Thanksgiving with coworkers, at 28%.Read more >
ON THIS DATE: In 1783, during the Revolutionary War, the British evacuated New York. New York was their last military position in the U.S. In 1850, Texas relinquished one-third of its territory in exchange for $10 million from the U.S. to pay its public debts and settle border disputes. In 1867, Alfred Nobel patented dynamite. In 1884, J.B. Meyenberg received the patent for evaporated milk. In 1955, in the U.S., the Interstate Commerce Commission banned racial segregation on interstate trains and buses. In 1957, U.S. President Dwight D. Eisenhower suffered a stroke. In 1986, U.S. President Reagan and Attorney General Edwin Meese revealed that profits from secret arms sales to Iran had been diverted to rebels in Nicaragua. National Security Advisor John Poindexter resigned and Marine Lieutenant Colonel Oliver North was fired.
Proclamation of Thanksgiving Even at a time of war, President Abraham Lincoln recognized what the nation had to be thankful for, as expressed in his Proclamation in 1863.Read more >

WEDNESDAY WISDOM: “Keep your eyes open to your mercies. The man who forgets to be thankful has fallen asleep in life.”—Robert Louis Stevenson, author

 

Happy Thanksgiving, everyone! NewsDash will be back in your inbox Monday.
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

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