Tag: retirement plan investing
The use of index funds by plans in the BrightScope Defined Contribution Plan Database increased from 79% of plans and 16.7% of assets in 2006 to 91.3% of plans and 33.2% of assets in 2016.
A Cerulli Associates report explains how different alternative investments can help a derisking defined benefit (DB) plan with liability hedging as well as risk-seeking.
Researchers argue that financial illiteracy impedes plan participants’ ability to determine how to invest their savings, and propose mandated employer-provided financial education to address limited employee financial literacy.
Finding that most households own mutual funds in employer-sponsored retirement plans, the Investment Company Institute (ICI) looked into the factors considered when selecting mutual funds.
For more than one year, 401(k) investors have been moving to safer investments, according to the Alight Solutions 401(k) Index.
An analysis from Morningstar suggests monitoring defined contribution (DC) plan fund menus can have a positive impact on performance, and investment management providers weigh in on how to determine when a fund change is needed.
401(k) consultants and advisers offer insight on the sentiments they are seeing from plan sponsors and make suggestions.
Two separate reports suggest that public pension plans’ strict adherence to target allocations and corporate pension plans’ focus on bonds and de-risking their portfolios may be hindering potential performance.
While target-date funds (TDFs) are intended to automatically diversify retirement plan participants’ portfolios, Vanguard found nearly one-third mix TDFs with other investments and “are pursuing what appear to be reasonable diversification strategies.”
“Growing emphasis on financial wellness, concerns about lack of retirement income options within employer-sponsored plans, increasing customization for the participant, and fiduciary concerns could spur additional growth in managed accounts,” Cerulli contends.
Cerulli Associates found fee sensitivity and the notion that environmental, social and governance (ESG) investing entails a trade-off in performance are two broadly applicable headwinds to ESG adoption.
A federal judge made this decision in allowing Massachusetts Institute of Technology’s motion to strike plaintiffs’ demand for a jury trial in a suit alleging breach of fiduciary duties and prohibited transactions.