Investing

It was also the 18th month in a row that net trades have moved from equities into fixed income

Among the remarkable characteristics of today’s global fixed-income marketplace is the $15 trillion invested in negatively yielding bonds.

“We just had an asset-allocation meeting and we spent probably half of it talking about global trade tensions and the China-U.S. relationship,” says Bob Brown, CIO at Northern Trust. “This is a big deal for the markets. The two largest economies in the world have changed the nature of their relationship.”

To combat the squeeze, asset managers will seek out new markets, product offerings and investment capabilities, says Cerulli.

River and Mercantile suggests that they use equity derivatives to provide contractual exposure to the equity market, but in a way where risk can be managed.

For the 17th straight month, 401(k) investor trades have favored fixed income, according to the Alight Solutions 401(k) Index.

Individual investors expect roughly twice the yearly returns forecast by their advisers and investment managers.

Anxiety about turning DC plan assets into a “lifetime retirement paycheck” in such a low-rate environment is keeping aging Americans in the workforce—including many who very likely have enough money saved to retire comfortably and don’t want to keep working.

A BrightScope/ICI study also found collective investment trusts (CITs) accounted for a larger share of assets in larger plans than smaller plans.

A new academic paper published by the TIAA Institute shows little difference in behavior among undergraduate students, young adults, middle-aged people and older subjects when it comes to rationally navigating uncertain conditions.  

While only 0.21% of balances were exchanged in May, it was the highest monthly activity so far this year, according to Alight Solutions.

Many retirement plan participants want to deploy their values in their portfolios, as do portfolio managers; advisers can help make this happen.

Long-duration private debt can be used for hedging liabilities, and other alternative investments may be used for enhancing risk-adjusted returns, a report from Cerulli Associates explains.

Studies conflict over the long-term performance of environmental, social and governance (ESG) investing, and institutional investors say they want better track records.

A research report argues that even defined contribution (DC) plan participants in plans with a default investment do not have the financial acumen to know whether the default is right for them or whether they should opt out.

Sales of fixed annuities increased 38% during the first quarter of 2019 relative to the same period last year, according to the LIMRA Secure Retirement Institute.

The large increase, rising to an average of $267,609, was due to the improvements in the market, Charles Schwab says.

History shows it is one thing to feel prepared, and quite another to be prepared.

Investors also look at historical performance and performance compared to an index, ICI found.