A law passed in 2014 allows stressed union pensions to reduce benefits in order to prevent insolvency, subject to approval by the U.S. Treasury. One leading actuarial firms says the agency is preparing to wrongfully reject an application made by one of its clients.
However, real estate investment trusts are still seen as a good investment diversifier for 401(k) participants.
The nearly 4,000 withdrawals totaled almost $100 million.
American Century surveyed retirement plan participants at the outset of the pandemic, when market volatility was extreme.
The broad trend of fiduciaries pursuing the lowest cost passively managed investment options will likely temper plans sponsors’ interest in adding private equity investments, sources say.
But the chief equity strategist at Nuveen expects it to be short-lived.
They warn that there could be a market pullback when second-quarter earnings start being reported and that the coronavirus’ legacy could be $1 trillion in business activity never returning.
We were already in a new normal of very low interest rates before the coronavirus pandemic struck. It now seems even less likely that the old rate regime will re-establish itself any time soon.
Investors continue to favor fixed income, according to the Alight Solutions 401(k) Index.
After falling precipitously in the first quarter, the S&P 500 Index added 20% during the second, making for the best quarter since 1998 and the best second quarter since 1938. What comes next is anyone’s guess.
The equity side of the portfolio tends to get a lot of air time, but experts agree that a more balanced approach should increase the likelihood of participants attaining their desired outcomes.
It is common to hear that private equity (PE) has been the best performing asset class in recent years for institutional investors, but a new academic analysis challenges that idea.
One economist says there is so much noise in the data that it’s hard to assess where we are right now, let alone where things are going from a macroeconomic perspective.
The 2020 equity market outlook continues to hinge on whether a major secondary spike in COVID-19 infections can be prevented; news headlines on this front confirm this remains a very real risk.
A mere 0.018% of balances were traded daily, according to the Alight Solutions 401(k) Index.