Across mutual fund and collective investment trust target-date products, the top-three managers own 62.6% of the market, while the top 10 account for 88.9%.
According to plaintiffs, Ruane’s flagship fund, the Sequoia Fund, contained more than $25 billion in assets until the firm “engaged in a misguided and reckless investment strategy.”
If the target-date fund (TDF) is the most important feature of a given retirement plan, shouldn’t the choice of TDF set the stage for the recordkeeper search?
For the most part, the investment management expenses plans pay are significantly greater than additional billed expenses, and are generally between 85% and 90% of the total cost of the plan.
The median equity exposure of equally weighted TDF vintages is 60%; equity exposure ranges from as high as 68% to as low as 51%, according to an analysis by Callan.
One ERISA attorney says he is encouraged by recent ESG product development in the DC space that is “about so much more than screening out stocks.”
The last four decades have brought tremendous amounts of new capital into the equities markets even as the total number of securities has sharply declined.
Much of the growing use of multi-asset-class solutions occurs within corporate retirement plans and other types of institutions utilizing outsourced chief investment officer services.
Wells Fargo’s Investor and Retirement Optimism Index offers some insight on what investors think of the interest rate environment and how they intend to address it.
Collective investment trusts, white labeling, smaller fund menus and “tiered” approaches are becoming the norm.
Research from Fidelity suggests personalized, goals-based advice pairs well with the use of managed accounts.
Fixed-income investments play a crucial role in overall target-date fund performance, but a new report suggests plan sponsors spend far more time thinking about the equity side.
Since the end of the financial crisis, in March 2009, the median total equity program in the Northern Trust Universe has had an average annual return of 14.3%—a figure expected to drop in the next decade.
One study suggests asset managers sticking to old sales and service models will very quickly start to fall out of favor among DC plan clients and other institutional investors.