Canadian pensions do a good job of keeping costs down, diversifying and using alternative investments.
Tag: Alternative investments
The lawsuit claimed the defendants breached their fiduciary duties by investing a significant portion of the plans’ assets in risky and high-cost hedge fund and private equity investments through custom-built target-date funds.
Serving governmental retirement plans is viewed as attractive by many providers, simply due to the sheer size and stability of the clientele, but one ERISA attorney warns there may be unexpected risk that comes along with such arrangements.
Research from Cerulli Associates warns consumers broadly do not understand liquid alternative investments—what they are made of or how they are supposed to function.
Analysts suggest infrastructure investments already have been doing fairly well in recent years despite heightened market volatility.
In the last few years, real-estate exposure has been gaining traction in the DC space; however, its potential for key benefits also poses several challenges.
Investors are looking to allocate to higher yielding areas, and are increasingly considering non-traditional asset classes.
Federal data collection efforts to date have captured little information on retirement accounts holding unconventional assets—such as real estate, precious metals, private equity, and virtual currency.
T. Rowe Price Expands 401(k) Brokerage Services with Charles Schwab; Wilshire Launches New EVA Index Family; USAA Launches R6 Retirement Share Classes; and more.
In particular, “alternative” investment classes are playing an increasingly important role in the effort to meet necessary portfolio returns, Cerulli finds.
Fee pressure in the DC industry is resulting in tailwinds for the expansion of the “strategic beta” asset class.
Sean Rhoderick, taxable fixed-income investing leader at PNC Capital Advisors, outlines unique opportunities driven by conflicted central bank policies and a persistently abnormal rate environment.
Society of Actuaries releases new research about economic scenario generators; and Nuveen announces online alternative investments platform.
Research from global analytics firm Cerulli Associates finds that institutional investors in general no longer limit review of their assets to traditional financial metrics such as revenue, profitability, or valuation.
Nearly one-third of asset managers cite the institutional channel as being their most important target for alternative investment expansion.
Real estate continues to be the top alternatives pick for pension funds.
If the pension plans included in the study, sponsored by NAREIT, had reversed their REIT and hedge fund allocations over the 1998 through 2014 period, at the end of 2014, they would have had plan asset balances that were 2% larger, the study report suggests.
Investors’ search for low-cost and passively managed funds is a primary reason.
Protecting assets and saving for retirement are also key goals.
Putnam Investments offers new strategies for uncertain markets; American Century Investments announces the public availability of AC Alternatives Long Short Fund; GSAM makes progress on planned merger of the Madison Target Retirement Funds into a new series of GS Target-Date Portfolios.