Happy Friday, readers! This week’s news roundup features articles on investing. Active fixed-income allocations are moving into risky territory. Corporate funds posted the highest returns among institutional investors in the second quarter. While usage of Roth 401(k)s is still quite small, at 13%, the popularity of Roth 401(k)s is growing. Some plan sponsors are using both target-date funds and managed accounts as their qualified default investment alternative, moving older investors into the managed accounts. While managed accounts are customized for each participant, experts say they can be benchmarked against participant’s goals, such as when they want to retire or how much they want to save. We hope you find our coverage helpful and informative.
Experts with Charles Schwab warn that a decade of generally stable credit markets has some investors feeling a false sense of security about “stretching for yield” within near retirees’ target-date funds.
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One legal professional at a fiduciary insurance firm argues that the ‘indiscriminate nature’ of recent ERISA lawsuit filings could eventually culminate in a crisis for the retirement plan industry’s current approach to risk management and fiduciary insurance.
Wednesday was a busy day for the U.S. Securities and Exchange Commission, which voted to propose two separate regulations that will impact investment managers and registered investment advisers—and which sources say are likely to generate substantial public comment and debate.