Newsdash Insight on Plan Design & Investment Strategy from PLANSPONSOR
September 11th, 2018
Benefits & Administration
Demand Growing for OCIO and PRT Services
Greg Calnon, with Goldman Sachs Asset Management, discusses how outsourced chief investment officer (OCIO) solutions are moving into the defined contribution (DC) plan space and how OCIOs can help with pension risk transfer decisions. Read more >
Younger Participants Gravitate to TDFs, Balanced Funds
Younger 401(k) participants have larger allocations to target-date funds (TDFs) and other types of balanced funds than do older participants, according to a joint study by the Investment Company Institute (ICI) and the Employee Benefit Research Institute (EBRI). At the end of 2016, 64% of participants in their 20s owned a TDF, compared with 45% of those in their 60s. “Target-date funds continue to be a widely available, widely used, popular and convenient investment choice for retirement savers,” says Sarah Holden, senior director of retirement and investor research at ICI. “Recently hired workers in particular often hold target-date funds in their 401(k) plan account, reflecting current plan design.” The study also found more participants hold equities than before the financial crisis of 2008. Read more >
Industry Voices
The Secret to a Better Financial Wellness Program: HSA Education
Helen Calvin, chief revenue officer at Jellyvision, explains how employees may respond better to employer education about health savings accounts (HSAs), tracking HSA education success is easier, and employee changes relating to HSAs is much easier than other financial wellness education. Read more >
MOST READ ARTICLES
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Adidas Sued Over Excessive Fees for 401(k) Participants
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(b)lines Ask the Experts – Proper Delivery Method for SPDs
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Yale Sued Over Wellness Program ‘Penalty’
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Employees in Two States Miss Out on One HSA Benefit
5
Some Help for Women’s Retirement Savings Gap May Be Coming
Products, Deals and People
Wagner Law Group Launches Adviser Search Support Service
The adviser search consulting program consists of three stages—analysis of plan needs, the request for proposals (RFP) process and final selection. Recognizing that litigation involving claims of breach of Employee Retirement Income Security Act (ERISA) fiduciary duty continues to grow, the firm’s adviser search consulting service is tailored to assist retirement plan sponsors with the search for and selection of appropriate investment advisers in a manner designed to ensure compliance with ERISA fiduciary obligations. Read more >
Market Mirror

Yesterday, the Dow closed 59.47 points (0.23%) lower at 25,857.07, the NASDAQ gained 21.62 points (0.27%) to finish at 7,924.16, and the S&P 500 was up 5.45 points (0.19%) at 2,877.13. The Russell 2000 closed 4.29 points (0.25%) higher at 1,717.47, and the Wilshire 5000 increased 72.04 points (0.24%) to 29,991.33.

 

The price of the 10-year Treasury note was up 1/32, decreasing its yield to 2.937%. The price of the 30-year Treasury bond increased 12/32, bringing its yield down to 3.086%.

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Compliance
Another Hit to Retirement Plan Investors: Financial Transaction Tax
An analysis shows a new bill introduced in the Senate would result in a significant financial hit to retirement plan investors. Modern Markets Initiative is pushing back on a tax provision in the bill. Read more >
Investing
TDFs Contribute to CIT Growth in 401(k)s
More than one-quarter of the $5.5 trillion 401(k) market was invested in collective investment trusts (CITs) in 2017, according to Cerulli Associates. “Increased CIT adoption has been supported by ongoing fee pressure, along with growing demand from mid-market consultants in the DC [defined contribution] market,” says Jessica Slafani, director at Cerulli. “Target-date funds have been an important driver of total 401(k) CIT asset growth. In fact, target-date CIT assets increased by nearly 85% between 2015 and 2017.” Read more >
Small Talk

ON THIS DATE: In 1297, Scotsman William Wallace defeated the English forces of Sir Hugh de Cressingham at the Battle of Stirling Bridge. In 1609, explorer Henry Hudson sailed into New York harbor and discovered Manhattan Island and the Hudson River. In 1776, a peace conference was held between British General Howe and three representatives of the Continental Congress (Benjamin Franklin, John Adams and Edward Rutledge). The conference failed and the American war for independence continued for seven years. In 1777, American forces, under General George Washington, were forced to retreat at the Battle of Brandywine Creek by British forces under William Howe. The Stars and Stripes (American flag) were carried for the first time in the battle. In 1786, the Convention of Annapolis opened with the aim of revising the articles of the confederation. In 1789, Alexander Hamilton was appointed by President George Washington to be the first Secretary of the Treasury. In 1842, 1,400 Mexican troops captured San Antonio, Texas. In 1883, the mail chute was patented by James Cutler. The new device was first used in the Elwood Building in Rochester, New York. In 1904, the U.S. battleship Connecticut was launched in New York. In 1910, in Hollywood, the first commercially successful electric bus line opened. In 1936, Boulder Dam in Nevada was dedicated by President Franklin D. Roosevelt by turning on the dam’s first hydroelectric generator. The dam is now called Hoover Dam. In 1941, in Arlington, Virginia, the groundbreaking ceremony for the Pentagon took place. In 1951, Florence Chadwick became the first woman to swim the English Channel from both directions. In 1952, Dr. Charles Hufnagel successfully replaced a diseased aorta valve with an artificial valve made of plastic. In 1954, the Miss America beauty pageant made its network TV debut on ABC. Miss California, Lee Ann Meriwether, was the winner. In 1959, Congress passed a bill authorizing the creation of food stamps. In 1967, The Carol Burnett Show premiered on CBS. In 1970, the last “Get Smart” episode aired on CBS-TV. In 1974, “Little House On The Prairie” made its television debut. In 1985, Pete Rose (Cincinnati Reds) achieved hit number 4,192 to break the record held by Ty Cobb. In 1997, Scotland voted to create its own Parliament after 290 years of union with England. In 2001, in the U.S., four airliners were hijacked and were intentionally crashed. Two airliners hit two buildings of the World Trade Center, which collapsed shortly after, in New York City. One airliner hit the Pentagon in Arlington, Virginia. Another airliner crashed into a field in Pennsylvania. About 3,000 people were killed. In 2012, terrorists attacked the U.S. consulate in Benghazi, Libya. Four Americans were brut.ally mur.dered and ten others were injured.

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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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