PLANADVISER Weekend Newsdash
Week ending July 13th, 2018

Happy Friday, readers! In focus for this edition of PLANADVISERweekend is the always timely topic of Investing, and more specifically, how to weigh risk and reward on retirement plan fund menus. We hear from several providers how growth in target-date fund usage continues to be incredible; missing is a deeper discussion of sequence of returns risk and other potential challenges for participants associated with this growth. We also examine research from Cerulli, pointing to a number of drivers behind the acceleration in asset management fee compression; the research and analytics firm also analyzes the competitive landscape of “robo-advice.” As always, we encourage you to share some of what you learn with a client or colleague.

Investing
Getting Serious About TDF Sequence of Returns Risk
The growth in target-date fund usage continues to be incredible; missing is a deeper discussion of sequence of returns risk and other potential challenges for participants associated with this growth. Read more >
Asset Management Fee Compression Accelerates
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.” Read more >
401(k) Participant Mutual Fund Expense Ratios Declined Substantially Since 2000
The Investment Company Institute also found 401(k) plan participants investing in mutual funds tend to hold lower-cost funds. Read more >
Segal Warns Against Change to Actuarial Assumptions for Multiemployer Plans
To determine the impact of such a change, the firm performed a detailed analysis of two national multiemployer plans. Read more >
Experts Probe Potential Signs of Variable Annuity Sales Recovery
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. Read more >
SEI Warns That Many TDFs Are Too Risky
SEI has been talking to TDF managers about deploying strategies within their investment lineup that mitigate the potential downside. Read more >
MOST POPULAR STORIES
Many Retirees Wish They Had Delayed Taking Social Security Benefits

MassMutual says a married couple that lives into their 90s but decides to begin their Social Security benefits at age 62 as opposed to age 70 could be leaving as much as half a million dollars on the table, or forfeiting $2,000 to $4,000 a month for life.

Another Bill Proposed as Senate Committee Hearing Brings Calls for Retirement Action

Besides a lengthy Finance Committee hearing discussing the popular RESA legislation, the day on Capitol Hill also brought news of the introduction of the new Retirement Security and Savings Act.

Institutional Plans See Strong Q1 2019 Returns

U.S. equities were the driver of rebounds from the 4th quarter of 2018, according to the Northern Trust Universe and the Wilshire Trust Universe Comparison Service.

RESA, RSSA, SECURE Act and More Pile Up in Congress

Sources say the SECURE Act could pass the House this month, potentially setting the stage for a reconciliation process that could bring together common elements of multiple pending bills.

Excessive Fee Suit Filed Against Greystar Management

The lawsuit accuses the sponsor of a small 401(k) plan with failing to monitor and correct excessive fees.

Editorial: Alison Cooke Mintzer alison.mintzer@strategic-i.com

Advertising: Paul Zampitella paul.zampitella@strategic-i.com

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