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.
BlackRock Managing Director Anne Ackerley, in conversation with PLANSPONSOR, explains new opportunities to deliver retirement income solutions to plan participants, including through the QDIA.
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.
DC plan consultants surveyed by PIMCO offer suggestions for helping retirees with income, core investment menu design and other DC plan features.
Putnam announces new pricing for TDFs; First Trust to launch AI and Robotics ETF; and Vanguard launches factor-based ETFs.
“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.