The firm argues clean share classes can stick to their channels with greater free transparency and lower cost.
Although ESG ratings can be useful when used properly, they should not be the sole metric used to make investment decisions. A report gives examples.
A look at actively managed versus passively managed equity and bond funds, blended target-date funds, and with more sponsors encouraging retirees to remain in their plan, how defined contribution plans need to address retirement income solutions.
Vanguard’s chief economist warns that rising rates may sting in the short term, but book value losses should be offset by higher future returns—rewarding those with perspective and strategic patience.
One option is through a profit sharing plan that invests the money in an annuity once a participant retires.
Diminished liquidity in global bond markets is fueling demand for fixed income exchange-traded funds.
On the majority of trading days, fixed-income funds led, according to the Alight Solutions 401(k) Index.
Broadly speaking, Northern Trust’s Capital Market Assumptions Working Group expects continued global economic growth, controlled inflation and accommodative monetary policy.
Lessons have been learned, but experts still worry about the “brittleness” of the U.S. and global financial system.
Sixty-four percent of participants in their 20s own a TDF.
Cerulli says retirement specialist advisers are becoming more knowledgeable about and comfortable with CITs, and the research firm expects CITs will continue to expand their share of 401(k) plan assets.
This will drive broader growth in ESG, Cerulli Associates says.
"As passive investing continues to grow, rather than simply accept an imperfect benchmark portfolio, municipal bond investors with a preference for passive solutions should think about adopting a smart beta approach,” suggests Catherine Stienstra, head of municipal investments at Columbia Threadneedle.
They see the differences between wirehouses, broker/dealers and registered investment advisers blurring.
Asked whether Wells Fargo Advisors will reconsider T shares if the DOL’s fiduciary rule is revisited or the SEC pushes through a conflict of interest rule, the firm simply said, “Although we could offer them in the future, we have no current plans to do so.”
Sixty-eight percent say they pay close attention to inflation as they prepare for retirement.
“By providing a more diversified set of fixed income options, plan sponsors can help participants be better equipped to weather any challenging market environment, such as the rising rate environment we are in right now,” a Insights article from Cammack Retirement concludes.
Vanguard research questions whether the risk-matching precision of SMAs is worth the cost and complexity.
Trading practices on both the sell side and buy side are leading to suboptimal executions, limiting ETF growth, according to a Greenwich Associates report.
Continuing the trend from the first quarter, corporate retirement funds and health care plans lagged during Q2 2018, according to BNY Mellon data.