Happy Friday, PLANSPONSOR readers! For the last week of 2017, we’ll shift today’s newsletter focus to investing. First, an annual Allianz Global Investors’ survey found institutional investors are progressively shifting towards alternative assets—70% surveyed say they already invest in alternative investment classes. Another vehicle peaking the interest of institutional investors: collective investment trusts (CITs). New data from Cerulli Associates reveals the appeal for CITs comes from overall better pricing. Next, MFS Investment Management draws attention to global momentum in their year-end market analysis; Pavilion Advisory Group creates a “Fiduciary Primer Quiz” survey—showing that even veteran investment committee members can trip up on their knowledge of institutional investing; and Summer Conley and Michael Rosembaum review what to do when faced with the process of selecting and monitoring investment options. All this and more in this issue of PLANSPONSOR Weekend. Have a very happy new year everyone!
A report from Cerulli Associates states the primary reason an institutional investor seeks out a CIT is the fact that it can often gain more favorable pricing compared to using other vehicles.
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If legislation passes to allow for open multiple employer plans (MEPs) for plan sponsors without a common nexus, experts believe they will offer benefits to plan sponsors, but there would be some considerations to explore before joining one.