PLANSPONSOR Weekend Newsdash
Week ending August 24th, 2018
Defined benefit (DB) plans require much work and attention, especially regarding investments. Many DB plan sponsors are using a liability-driven investing approach to make sure the assets held for the plan match the liability of the benefits it needs to pay. However, DB plans need growth as well to improve their funded status. In this week’s edition of PLANSPONSOR Weekend, we offer insights from various entities about improving investment performance and cost for DB plans.
Editor's choice
Compliance
Lawsuit Challenges Benefit Cuts Under the Multiemployer Pension Reform Act
Plaintiffs seek government compensation for participants “prevented from accessing their own financial property.”Read more >
Investing
Is the Risk-Matching Precision of SMAs Worth the Cost and Complexity?
Recent Vanguard research explores the defined benefit (DB) plan risk-matching precision behind separately managed accounts (SMAs) and whether other investment vehicles, including collective investment trusts (CITs) and mutual funds, can equate that effectiveness.Read more >
Investing
Institutional Investors Need to View ETFs Differently
Investors and broker-dealers should start treating exchange-traded funds (ETFs) as an asset class all their own, Kevin McPartland, with Greenwich Associates suggests.Read more >
Investing
Fees Negatively Correlated With Public Plans’ Ability to Meet Benchmarks
Alternative investments charge higher fees than traditional asset classes such as public equities and fixed income, and according to a study, these fees, in particular, may play a meaningful role in public plan underperformance.Read more >
Investing
PanAgora Suggests New Investing Strategy for Public DB Plans
“A cap-weighted strategy skews its way toward the largest stocks, but if plan sponsors own equities in a much more balanced way, it will help with stability,” says Bryan Belton, director, multi asset, at PanAgora Asset Management.Read more >
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