"The new normal for interest rates simply means that retirement investors have to take more risk,” says Steve Foresti, CIO at Wilshire Consulting.
Until recently, the marketplace expected the U.S. and China would, year over year, continue to integrate and overlap their economic systems. Increasingly, it seems the two spheres are instead pulling apart.
Common biases impacting retirement plan investors include the availability bias, belief perseverance bias, confirmation bias, herding bias and more.
Making sure plan participants understand the positive aspects of volatility can help them avoid poor trading decisions during periods of negative returns.
One firm, for example, plans to soon roll out multiple additional products to complement its two existing ESG-labeled strategies—next will come ESG approaches to global equity and global income.
The founder of PIMCO is known as one of the most successful bond managers in U.S. history; his rocky 2014 breakup with the firm he founded offers some important takeaways for investment managers and their clients.
The Endowment Index represents a benchmark for analyzing the investable opportunity of managers of portfolios utilizing the “Endowment Investment Philosophy” or who “otherwise incorporate alternative investments within a comprehensive asset allocation.”
High trading activity days were concentrated around the beginning and end of the year—with trades moving in similar volumes in opposite directions.
Charles Schwab’s 2019 forecast does not suggest long-term investors should rotate their portfolios away from risky assets, but investors should be more thoughtful about the growth assets they hold.
The top economists at J.P. Morgan Asset Management and Vanguard remind investors that volatility is normal, and that long-term thinking is a solution to short-term stress about equity prices.
For the year ended September 30, they are up 6.90%, according to the Wilshire Trust Universe Comparison Service.
After several weeks of relatively large price swings for major equity market indices, 401(k) trading activity jumped on Monday, October 29.
J.P. Morgan anticipates labor supply constraints in developed countries starting in the next decade; while global growth expectations are modestly good, the firm urges policymakers to consider the importance of immigration when it comes to fueling future growth.
Northern Trust expects relatively steady economic growth, controlled inflation and accommodative monetary policy.
Forty percent say information about fund fees is “very important” when selecting a mutual fund, ICI found in a survey.
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.
There is some lingering uncertainty about the role of smart beta institutional investing, as more than 50% of asset owners in the U.S. say they remain uncertain on the best approach for their particular purposes.
The TDF series also takes a liability-driven investing approach to providing adequate retirement income.