PLANADVISER Weekend Newsdash
Week ending August 10th, 2018

Happy Friday readers! This weekend’s mailing focuses on the always timely topic of Investing, with a particular focus on risk and cost management. As we report below, 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. At the same time, new research points to a number of drivers behind the acceleration in asset management fee compression, tied to improved automation and stronger competition. We hope you will share some of what you read with a client or colleague.

Editor's choice
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 >
TDF Providers Adapted to Low-Cost Demand, But Plan Sponsors Still Need to Be Diligent
Investors in TDFs need to look beyond price tags to investment strategy to determine the appropriateness of the fees and should be mindful of the relatively tight dispersion of returns within TDF categories, Morningstar warns. 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 >
Investors in U.S. Equity Funds Earned 8.32% a Year Over the Past Decade
This compares to 8.93% for the average fund, making a shortfall of 0.61 percentage points, Morningstar says. 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 >
Opportunities Exist, But Future of CITs in 403(b) Plans Remains Murky
Higher education clients with very large 403(b) plans could theoretically benefit from new laws or regulations allowing them to invest participant assets through collective trust vehicles, but for most other non-profit clients, CITs might not make that much sense. Read more >
MOST POPULAR STORIES
Fidelity Faces a Myriad of Allegations in New ERISA Lawsuit

In addition to self-dealing allegations, the complaint calls out Fidelity for not negotiating revenue sharing refunds for its 401(k) plan participants and not considering stable value options for its plan investment lineup, among other things.

Education About Tax Treatment and Fees Could Boost 401(k) Participation

Findings from a Capital One survey about why employees do not participate in their employer-sponsored retirement plan offers opportunities for education, according to Stuart Robertson.

AARP Launches Social Security Resource Center

The new website is designed to be a one-stop place for investors and retirees to have their Social Security retirement questions answered, including when to claim.

Open MEPs Could Create Many Opportunities for Advisers
Should Congress or federal regulators eliminate the common nexus and bad apple rules that have held back open multiple employer plans, experts anticipate many more small businesses will jump in.
Retirement Industry People Moves

Voya hires regional sales vice president; Northern Trust names former employee its new strategy director; Broadridge announces a series of changes to its global operations team; and more.  

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

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

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