Most 401(k) trading in the month favored fixed income investments.
The guide provides a checklist for periodic reviews, key questions to ask and items to consider.
A retirement plan’s default investment could have drawbacks for some employees.
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.
SSGA is following the trend of providers lowering investment fees, and sees an opportunity to attract 403(b) plan sponsors.
Lincoln Financial creates personalized target-date portfolios; Aon Hewitt-managed pooled funds claim compliance with GIPS; Vanguard launches Global Credit Bond Fund; and more.
Morningstar warns that the distinction between "active" and "passive" target-date series has become more muddled in recent years.
In addition, Vanguard found among its book of business a large increase in the number of small businesses offering retirement plans to employees.
HSAs need to offer equities, multi-asset classes and fixed income, Devenir says.
There are a number of investment vehicles to consider when drafting a plan menu that best suits the plan's participants.
How Hearst Corp. followed a prudent process to choose its qualified default investment alternative.
“[When] investors commit to consistent investment regimes, investor returns are strong and the gaps are often positive," Morningstar says.
When constructing their own retirement portfolio, about 10% of participants still hold extreme allocations—either 0% or 100% equities.
MassMutual introduces new TDFs, and Krane Funds Advisors creates CIT for retirement plans.
According to Jake Tshudy at SEI, “An actuarial valuation approach akin to a DB plan is the best strategy to determine if a TDF series has the appropriate level of risk based on a plan’s demographics.”
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.
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.
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%.
Russell Investments Presents New ESG Score Framework; Merrill Lynch Reveals New ESG Portfolios; EDHEC-Risk Institute Reexamines Retirement Products; and more.