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
House Committee Advances Bill With Various Retirement Plan Provisions

The RISE Act would increase automatic cashout limits, enable employers to offer small financial incentives for retirement plan participation and simplify plan sponsor disclosure requirements, among other things.

Retirement Industry People Moves

North Pier adds senior consultant in Chicago; Natixis Investment Managers hires head of retirement and institutional business; Mesirow appoints managing director to oversee structured debt; and more.

Employees Favor Retirement Plans That Substitute Annuities for Bonds

A survey also found nearly half of employees prefer to have a mix of investments and lifetime income over either traditional pensions or investments alone.

NFP’s Wealthspire Acquires Private Ocean

Wealthspire’s leadership calls the acquisition “a significant opportunity to plant a flag on the West Coast and demonstrate our growing national scope.”

A 3.3% Withdrawal Rule Might Be More Sustainable for Retirees Going Forward

Considering low bond yields and high stock valuations, Morningstar re-examined the traditional 4% withdrawal rule.

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