Despite Market Rebound, Investors Flocked to Fixed Income in Q119
Nearly 90% of the days in the quarter saw net trading activity favor fixed income, according to the Alight Solutions 401(k) Index.
Tag: target-date funds
Products
Investment Product and Service Launches
Finadium builds database of securities lending mutual funds and ETFs; OneAmerica, Russell Investments managed accounts consider outside retirement assets; and MainStay moves target-date funds to other asset allocation funds.
Plan Sponsors Actively Evaluating, Changing TDFs
A BlackRock survey shows four in 10 DC plan sponsors say they have changed or added TDFs in the past 12 months.
Active TDFs Offer Advantages for DC Plan Participants
Cerulli Associates points to active target-date fund (TDF) performance during market volatility and the ability to mitigate sequence of return risk for defined contribution (DC) plan participants as reasons to consider them.
DC Plan Participant Use of TDFs Continues to Grow
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.”
Responsible Approaches to Tactically Managing TDFs
Target-date fund (TDF) providers use tactical strategies to support goals of the funds’ glide paths, but responding to a report from a professor of finance at London Business School, providers question whether there is a point where a tactical approach goes too far.
Trend in TDF Move to Passive Management Continues
Sway research finds target-date series that invest in passively managed underlying funds, as well as those that invest in collective investment trusts (CITs) have been increasing, while target-date series that invest in actively managed underlying funds saw their market share fall.
A Drop Off in Volatility in January Led to Scant Trading
It was the slowest start to the year in the 20-plus years of the Alight Solutions 401(k) Index.
Q4 2018 Market Drop Did Not Deter 401(k) Participants
Long-term 401(k) participation, savings and investing trends have also been positive, due in no small part to automatic plan features, according to a report from Fidelity Investments.
DC Plan Sponsors Slow to Adopt Hybrid QDIAs
Just as defined contribution (DC) plan sponsors were once concerned about automatically enrolling employees in the plan when they didn’t actively select it, they have hesitations about using qualified default investment alternatives (QDIAs) that automatically place participants in a managed account.
Products
Investment Product and Service Launches
ProShares unveils ETF suite; TRPC adds Stadion StoryLine to retirement solutions platform; T. Rowe Price creates Dynamic Credit Fund.
401(k) Participant Trading Returned to Normal in November
Most 401(k) trading in the month favored fixed income investments.
Vanguard Offers Guide to Evaluating TDFs
The guide provides a checklist for periodic reviews, key questions to ask and items to consider.
Consider Who Will Select It When Choosing a Retirement Plan Default Investment
A retirement plan’s default investment could have drawbacks for some employees.
Employees Want Retirement Income Certainty
Ninety-four percent said they would keep all or at least some of their money in a target-date fund that guaranteed an income stream for life, an AllianceBernstein survey found.
Most Participants Welcome Retirement Savings Help From Plan Sponsors
Many participants see the match percentage as a suggestion for how much to save; the majority of participants support automatic plan features; and even participants who are hands-on with investing like TDFs, J.P. Morgan found.
Investment Product and Service Launches
MassMutual debuts RetireSMART TDF series with J.P. Morgan glide paths, while AXA doubles down on SRI/ESG integration.
Investment Product and Service Launches
Securian Incorporates Custom Investment Models and American Century Expands ETF Suite.
401(k) Participants Mostly Stayed Put in Investments in July
Among those who did trade, the majority put assets into fixed income vehicles.
SSGA Eliminating A Shares for Target Retirement Funds
SSGA is following the trend of providers lowering investment fees, and sees an opportunity to attract 403(b) plan sponsors.