Tag: Investments

Despite something of a tepid second quarter, pension plans have enjoyed a strong year of growth.

A Willis Towers Watson report suggests large capital flows into certain squeezed portions of the private credit market are creating downward pressure on returns and upward pressure on risk.

While most women surveyed want to grow their investments in retirement, they worry more than men about the risk involved and think they’ll need to adopt a conservative investing style.

Although smart beta is still a small category with just $430 billion in AUM, or 0.5% of the global total, it has grown by 30% a year since 2012, according to Boston Consulting Group.

The chief investment officer at Winthrop Capital Management discusses the uptick in short term interest rates and new opportunities within the one-year to five-year part of the curve.

According to the Alight Solutions 401(k) Index, year-to-date there have been 29 days with above-normal trading activity, suggesting that the month of June brought back a bit of a sense of tranquility for investors after a difficult start to the year.

Through the expanded Fidelity managed account program, employees will benefit from “ongoing, proactive engagement, including expanded annual checkups, reminders, and information that addresses their specific investment needs, to help them stay on track toward their financial goals.”

Ruling in favor of a detailed motion to dismiss filed by defendants, the court cites a long list of precedent-setting cases, including the U.S. Supreme Court’s 2014 decision in Fifth Third v. Dudenhoeffer.

The text of the new decision says the second amended complaint has failed because “it is an attempt to replead dismissed counts,” and because it includes an entirely new cause of action, violation of the Racketeer Influence Corrupt Organizations Act.

Understanding the opportunities associated with 3(21) and 3(38) fiduciary services—and the key differences between them—can help ensure the best use of the retirement plan committee’s time and resources.

Data from Morningstar demonstrates variable annuity net assets fell 1.6% to $1.95 trillion during the first quarter of 2018, versus fourth quarter 2017 net assets of $1.99 trillion; still, experts anticipate sales to recover as regulatory pressure and uncertainty ease.

Asked about the major reasons they want to work beyond the traditional retirement age, Americans point to both wants and needs. The most common response is that people want to stay active and involved, or that they simply enjoy working; a fifth say they expect to need to work.

Target-date fund designs should take into account the risks retirement plan participants face—how to correlate and corral the evolving sources of market, event, longevity, inflation and interest rate risks.

“The idea that financial planning and wealth management are just for millionaires is one of the biggest misconceptions among Americans, and one of the most damaging,” warns Joe Vietri, senior vice president and head of Charles Schwab’s retail branch network.

Data from BMO GAM shows DC retirement plan fees have fallen for all sizes of plan sponsors except those with between $10 million and $50 million in assets.

One clear point of concern in the data is the increasing number of Americans who anticipate retiring at 70 years or older than in the “traditional 65 to 69 range.”

Expense ratios of target-date mutual funds averaged 0.44% in 2017; since 2008, ICI explains, the expense ratios of target-date mutual funds have fallen 34%.

Participants in the Lowe’s 401(k) plan have filed an ERISA complaint against their employer and Aon Hewitt Investment Consultants over alleged imprudent investment decisions.