Investors in TDFs need to look beyond price tags to investment strategy to determine the appropriateness of the fees and should be mindful of the relatively tight dispersion of returns within TDF categories, Morningstar warns.
According to the Alight Solutions 401(k) Index, June was a slow month for trading in defined contribution plans; when 401(k) investors made trades, they tended to favor fixed income.
More advisers are turning to alternatives, according to a report from BNY Mellon | Pershing.
Mercer suggests pension sponsors should now focus on the shakeout that lies ahead, with the potential bifurcation between liabilities sold to insurers and the hard stuff kept on pension balance sheets, by using hibernation investing.
New research from Cerulli points to a number of drivers behind the acceleration in asset management fee compression, tied to improved automation and stronger competition; the research and analytics firm also analyzes the competitive landscape of “robo-advice.”
PGIM suggests DC plan sponsors look to the investing approach of defined benefit (DB) plans, endowments, sovereign wealth funds, insurance company general accounts, sophisticated wealth management platforms and family offices. These institutional investors focus on solutions that are believed to offer a higher probability of meeting a desired outcome.
As an investment professional or a client, there are a lot of reasons to feel positive about the topic of environmental and socially minded investing, but new Cerulli research offers a reminder that not all “ESG” funds are created equal.
Panelists discussed numerous investment options that can push additional retirement savings.
The Investment Company Institute also found 401(k) plan participants investing in mutual funds tend to hold lower-cost funds.
When trades were made, there was a continued movement away from equities into fixed income.
Together, they supply 40% of retirees’ income.
The objective is to educate Americans about the importance of protected lifetime income solutions.
This is a 50% increase from 2017.
This compares to 8.93% for the average fund, making a shortfall of 0.61 percentage points, Morningstar says.
According to the firm, the Total Stock Market Index Fund, which remains in the investment menu, is the best proxy for the U.S. market.
It also enables them to negotiate lower fees, Vanguard says.
Variable annuities continue to face challenges in the wake of transaction processing disruptions caused by the now-vacated DOL fiduciary rule; however, experts anticipate sales to recover as business processes normalize and newer product types come to market.
The vehicle has maintained the popularity vote since 2010.
A report based on data from participants in the Schwab Personal Choice Retirement Account says 18.7% of SDBA accounts were managed by an independent investment adviser.
SEI has been talking to TDF managers about deploying strategies within their investment lineup that mitigate the potential downside.