Week ending August 11th, 2017

NOTE FROM THE EDITOR

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.

Editor's choice

Investing

False Sense of Security Surrounds Active Fixed-Income Allocations

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. Read more >

Investing

Corporate Funds Post Highest Returns Among Institutional Investors in Q2 2017

Corporate funds saw a quarterly gain of 3.13%, compared to a median return of 2.88% for all plan types, according to the Wilshire TUCS. Read more >

Investing

Thirteen Percent of Workers Are Saving in a Roth 401(k)

This is up from 8% in 2011. Read more >

Investing

Hybrid QDIAs Can Help Preserve Retirement Income

DC plan sponsor clients can leverage both TDFs and managed accounts together to maximize outcomes. Read more >

Investing

Benchmarking Managed Accounts Against Participant Goals

Some industry experts believe managed account performance should not be benchmarked against an index but instead against an investor’s unique individual goals. Read more >

MOST POPULAR STORIES

TIAA Faces New Managed Account Rollover Complaint Months After Settling SEC Charges

A new lawsuit suggests the individual advisory program TIAA clients were rolled into was significantly more expensive and generated hundreds of millions of dollars in fees for TIAA—without providing commensurate performance benefits.

DOL Announces Anticipated ESG Fiduciary Investing Rule

Agency leaders say the principal idea of the new proposal is that climate change and other ESG factors can be financially material and, when they are, considering them will inevitably lead to better long-term risk-adjusted returns.

Plaintiffs Claim Deloitte Breached ERISA Prudence Duties

Arguments in the new case closely resemble previous lawsuits filed against other firms citing the ERISA fiduciary duties of prudence and of monitoring fiduciaries.

Social Security Benefits Will Grow 5.9% in 2022 Amid Renewed Inflation Concerns

The important federal benefit increases when the cost of living rises, as measured by the Department of Labor’s Consumer Price Index for Urban Wage Earners and Clerical Workers, or the ‘CPI-W.’

Only 31% of Hispanic Workers Participate in a Workplace Retirement Plan

Morningstar says there are several factors besides lower income that could contribute to the lower savings relative to other demographic groups.

Unsubscribe

Manage Subscriptions

Advertise