Liability-driven investing is growing more important as pension plans broadly move into a phase where they are not growing but instead need to be focused on meeting their benefit obligations.
It was the slowest start to the year in the 20-plus years of the Alight Solutions 401(k) Index.
In December 2018, certain of the corporation's pension plans used pension trust assets to purchase group annuity contracts from insurance companies for $2.6 billion.
Offering fewer than 12 categories may mean participants are not being given sufficient opportunity to diversify, and offering more than 20 could lead to lower average investment in each fund, which may cause higher fees, ERISApedia.com says.
These are just a couple of the tips Conrad Siegel offers for retirement plan investment lineups.
“Looking forward to 2019, we think many plan sponsors will continue to explore risk transfer activities as well as review their investment policies to ensure they are aligned with an evolving market environment,” says Scott Jarboe, a partner in Mercer’s Wealth business.
On the one hand, participants were very active during the year, with 46 days of above-normal daily transfer activity; on the other hand, net trades in 2018 amounted to only 1.42% of total plan balances, making 2018 a record low year for trading volume.
Findings in a new CAPTRUST survey report suggest there may be opportunities for advisers to support board-level investment and fiduciary training at endowments and foundations.
Despite a global economic slowdown and increased trade tensions, most major asset managers are not predicting an imminent recession—instead they are urging clients to embrace diversification and stick to long-term strategies.
Aside from ensuring diversification, plan advisers can help refocus participants on their respective time horizons, whether it’s a Millennial looking at retirement 30 years down the line, or a Baby Boomer hoping to retire in the near term.
The university has pared down to 11 investment options in its 403(b) plan.
DC plans are well positioned to significantly add to American’s financial security by adopting retirement income solutions that are currently available in the market today.
Omar Aguilar and Brett Wander agree that global growth is likely to slow some in 2019 and that volatility will persist as liquidity decreases, but they contest the idea that downturn is on the horizon.
As the firm launches a new initiative to educate investors about active management opportunities, Putnam CEO Bob Reynolds says he is optimistic that an improved retirement landscape will take shape in 2019.