PLANSPONSOR Weekend Newsdash
Week ending November 30th, 2018
Happy Friday, PLANSPONSOR readers! This week’s edition will focus on investing. A recent Charles Schwab study found just 8.5% of Millennials are utilizing advisers for their self-directed brokerage accounts, while an Investment Company Institute (ICI) report says the demographic group is the most likely to own mutual funds solely through employer-sponsored retirement plans. Additionally, Schwab Stock Plan Services explores why an abundance of employer stock can be damaging; a study reveals how despite de-risking concerns, global equity continues to be significant in the institutional investing realm; and a survey discloses the increasing concern market volatility has on American workers. All this and more on this edition of PLANSPONSOR Weekend.
Editor's choice
Self-Directed Millennials Less Likely To Use Advisers
Among participants using an adviser on their self-directed brokerage account in Q3, 45% were Baby Boomers, similar to Gen X; just 8.5% were Millennials, according to Charles Schwab.Read more >
Retirement Plans a Big Source of Mutual Fund Investing for Millennials
By comparison, the majority of mutual fund investing for Baby Boomers is outside of an employer-sponsored retirement plan, Investment Company Institute data shows.Read more >
Too Much Employer Stock Could Be a Bad Thing
According to a nationwide survey from Schwab Stock Plan Services, equity compensation accounts on average for nearly 30% of employees’ net worth, and almost three-quarters of employees surveyed also own company stock outside of their equity compensation plan.Read more >
Despite De-risking Concerns, Global Equity Remains Important to Retirement Plans
Fifty-five percent of U.S. investors have their global equity allocation in active, alpha-seeking strategies, and the planned allocation to these strategies in three years is 61%, research found.Read more >
Half of Americans Think Market Volatility Has Increased
And a majority, 65%, say it is tougher now to get ahead financially than it was before the financial crisis, Natixis found in a survey.Read more >
DuPont Plan Participants Claim Arbitrary Interpretation Reduced Their Pension Benefits

The complaint says Corteva Inc.’s ‘sleight of hand’ when determining when to label employees that were part of a spinoff as ‘terminated’ allowed it to deny promised benefits.

Defined Benefit vs. Defined Contribution: Understanding the Costs of Each
There are instances where a DB plan is the more cost-effective option, but experts say the trend of lower DC plan fees could be a game-changer.
2021 Recordkeeping Survey
Considering the Arguments for and Against Actively Managed Funds in DC Plans

The debate continues following a recent publication from the CFA Institute Research Foundation which asks, ‘Is active management worth it?’

TRIVIAL PURSUITS: How Many Verses Does The Star-Spangled Banner Have?
During sporting and other events, the first verse of The Star-Spangled Banner” is usually sung.

Editorial: Alison Cooke Mintzer


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