PLANSPONSOR Weekend Newsdash
Week ending September 29th, 2017

Hello, PLANSPONSOR readers! This week’s focus is on investing. There is some concern about the search for yield in target-date funds (TDFs). Since the financial crisis of a decade ago, in an effort to combat years of incredibly low interest rates, some active fixed-income strategies held in TDFs have taken on additional risk within their portfolios. “As a result, some TDF fixed-income exposures risk the potential of behaving more like equities than bonds, should significant market stress return,” Jake Gilliam, senior multi-asset class portfolio strategist, Charles Schwab & Co., says. John Lowell, with October Three, suggests an alternative to liability-driven investing (LDI) for some defined benefit (DB) plan sponsors. Morningstar discusses what “clean shares” really means, and Willis Towers Watson extols the virtues of white label funds. All this and more in this edition of PLANSPONSOR Weekend!

Editor's choice
Events
PLANADVISER National Conference
The PLANADVISER National Conference (PANC) is the retirement plan industry’s premier networking and business strategy event for specialist retirement plan advisers! What’s so different this year? Everything. Start with an all-new agenda designed by, and loaded with, retirement plan specialists … A powerful roster of big-name speakers invited to educate and entertain throughout the conference’s three days … And more focused networking activities than ever before, created to allow old relationships to renew and new relationships to develop. Join us next month in Orlando! Read more >
Investing
Search for Yield in TDFs Can Leave Older Investors Over Exposed
Greater exposure to higher-yielding corporate bonds can notably dampen a fixed-income allocation’s diversification benefits to equity investments. Read more >
Investing
For Some DB Plan Types IDL, Not LDI, Is the Answer
John Lowell, with October Three, says for two types of DB plans, investment-driven liabilities (IDL) is almost risk free for plan sponsors and provides more meaningful benefits to participants. Read more >
Investing
Overly Broad Clean Shares Discussion Can Mislead Novice Investors
As a follow up to Morningstar’s recent response to the Department of Labor’s (DOL) request for information on the fiduciary rule implementation process, the firm has published an infographic aimed at helping retirement plan professionals answer the crucial question, “How clean are my funds?” Read more >
Investing
White Labeled Funds Attract More Plan Sponsors
Willis Towers Watson makes the case for white label funds in a new paper. Read more >
MOST POPULAR STORIES
J.P. Morgan Agrees to Settle Stable Value Funds Suit

The firm has agreed to pay $75 million to settle litigation brought by multiple retirement plan participants alleging J.P. Morgan invested its stable value funds in risky assets.

SECURE Act Passes House, Bringing Calls for Senate Collaboration

Reflecting on the much-anticipated House vote, Kevin Walsh, principal with Groom Law Group, said today is an important day for the retirement industry, but it’s not the end of the story.

Individuals, Employers and Government All Play a Part in Retirement Readiness

A new research report and Catherine Collinson, with Transamerica Center for Retirement Studies, lay out steps all three can take to improve retirement confidence and readiness in America.

Participant Loans: A Fiduciary Storm Brewing?
Bruce Ashton, with Drinker Biddle & Reath, discusses the fiduciary risk defined contribution (DC) plan sponsors could face when participants default on plan loans.
What to Know About Financial Audits Filed with Form 5500s
Plan sponsors required to file a financial audit along with their Form 5500 should know how regulators use the information and how to pick the best auditor.

Editorial: Alison Cooke Mintzer alison.mintzer@strategic-i.com

Advertising: Paul Zampitella paul.zampitella@strategic-i.com

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