The trend of small trades away from equities to fixed income funds seems to suggest participants were rebalancing their portfolios, not making drastic changes to their investment mix, says Rob Austin, with Alight Solutions.
PIMCO says that rather than go with an all-actively managed target-date fund (TDF) or an all-passively managed TDF, a mix of the two makes sense—and that there is particular logic to assigning the fixed income portion of the portfolio to active management due to outperformance.
“Stocks are trading at a very high price-to earnings ratio, and we don’t see that as sustainable,” says Jon Barry, senior retirement strategist at MFS.
From an operating perspective, plans can use private investments in a multi-asset class investment vehicle.
An ever-greater proportion of the wealth being generated by the U.S. and global economies is locked away in private equity markets.
“We think 2020 will be another year of slow growth—durable enough to avoid recession but disappointing to those looking for improvement,” says Bob Browne at Northern Trust.
Are earnings estimates too high? Is the trade progress substance or show? How long can a recession be avoided? What might the election mean for the economy?
Experts says environmental, social and governance investing mandates are being boiled down to more practical, discrete risk areas, such as cybersecurity or board diversity.
There were no days of above-normal trading activity, according to the Alight Solutions 401(k) Index.
S&P studied companies demonstrating three levels of carbon sensitivity and found that all three held up in terms of stock performance; furthermore, S&P says these companies are well managed.
Asset managers also expect modest economic growth to shift investors’ attention to smaller companies, value stocks and cyclical sectors.
If the Fed continues to cut interest rates, sources say, stable value funds will likely prove to be superior in comparison with money market funds.
PIMCO is now in the process of reimbursing investors affected by the miscalculation.
Jason Shapiro notes that some DC plan participants may stay in their plan after retirement and rely on TDFs’ asset allocation for retirement income for possibly 30 years or even more.
They are viewed as the third phase in the development of exchange-traded funds.
Presidential election cycles have a history of unpredictability, and for that reason alone investors should be cautious about tailoring their portfolios based on the politics of the day.