Average individual 401(k), 403(b) and IRA account balances increased year-over-year, according to the latest cut of data from Fidelity’s book of retirement business, but the average dipped slightly from Q4 2017, reflecting market volatility and the fact that new small-balance savers entered the fold.
Tag: target-date funds
However, an analysis from Alight Solutions found users of managed accounts see higher returns, are more diversified and save more in their DC plans than TDF users.
Russell Investments Presents New ESG Score Framework; Merrill Lynch Reveals New ESG Portfolios; EDHEC-Risk Institute Reexamines Retirement Products; and more.
The lawsuit questions the selection of underlying investments for the Principal LifeTime Hybrid Collective Investment Funds, alleging Principal used proprietary investment vehicles, rather than other investment vehicles, and share classes with higher fees.
One of the most common approaches to valuing managed account services is to compare historical investment performance with a target-date fund or similar benchmark; Empower Retirement argues there is a better approach that involves considering “an alpha-equivalent measure.”
Putnam announces new pricing for TDFs; First Trust to launch AI and Robotics ETF; and Vanguard launches factor-based ETFs.
ERISA requires plan sponsors to regularly monitor investment lineups to ensure they remain prudent—a task made more complicated by the multi-layered construction of target-date funds; a new paper points to the best practices of defined benefit plans for some guidance.
“The world is moving toward big data, and thus far as an industry we haven’t been able to use big data in a meaningful way. We are now in the midst of a paradigm shift that will allow plan sponsors to make data-driven decisions in an entirely new way,” says Thomas Idzorek, with Morningstar Investment Management.
BCG adds 401(k) managed account from Stadion to recordkeeping platform; Mercer partners with Investment Metrics for client reporting; BCM TDF series to offer protection within uncertainty; and more.
About a third of participants across Millennials, Generation X, and Baby Boomers who self-manage the investment of their plan accounts are more conservative than a typical target-date fund appropriate to their age.
Invesco launches Peak Retirement Target-Date Fund Series, and Efficient Advisors launches mutual fund partnership with Dimensional.
Michael Schultz, RFC, CFS, president, Venn Wealth & Benefit Services discusses variables that should be considered when doing due diligence on TDFs.
Cerulli Associates suggests that if retirement plan sponsors position managed accounts as a valued service it could alleviate concerns about costs.
The first step, AB says, is to replace TDFs from recordkeepers with open architecture, next-gen TDFs.
Alight Solutions says there was a 50/50 split of trading days favoring equities and those favoring fixed income.
T. Rowe Price Chooses Linedata to Oversee Net Asset Value; Columbia Threadneedle Presents Target-Date Solution; and more.
The majority of outflows from retirement plan participant accounts came from U.S. equities and company stock, despite powerful stock market returns for the year thus far.