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
SECURE Act's House Passage Brings Test of Congressional Mediators

With the passage of the SECURE Act by the House of Representatives, experts tell PLANADVISER they are optimistic that agreement will be reached with the Senate during this Congress, but the many supporters of retirement reform will have to wait and see how compromise might be reached.

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.

Some Expect Senate Action Sooner Than Later on SECURE Act

One retirement industry executive says she believes the Senate could act quite quickly in taking up the SECURE Act, which just passed the House of Representatives with a practically unanimous yea vote.

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.

Product Development Moves Beyond the 401(k) Plan

Retirement plan advisers with established 401(k) businesses are finding new revenue streams and client engagement opportunities among nonprofits and educational institutions, and in the area of estate planning.

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

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

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