Retirement plan experts say people in this market are in need of advisers who are attuned to and understand their needs.
Biden Expected to Advance a More Stringent Fiduciary Rule, Advocate for Retirement Income and ESG Investing
Industry experts reflect on what President Joe Biden has done in his first months in office with respect to retirement plans and what they still see coming down the road from his administration.
President Joe Biden seems to want to pave the way for more environmental, social and governance investing in retirement plans.
Interest in ESG investing continues to grow, but many investors want proof of its alpha.
The department says it will not pursue enforcement actions against any plan fiduciary for failure to comply, and it plans to release further guidance on the issues.
TIAA says a variable annuity and mutual funds that take an ESG approach are widely used on its retirement plan platforms.
Research finds that if this goal is met, advisers’ share of wallet increases.
Surveys find plan sponsors and participants have a growing interest in environmental, social and governance issues.
S&P studied companies demonstrating three levels of carbon sensitivity and found that all three held up in terms of stock performance; furthermore, S&P says these companies are well managed.
John Hancock creates model portfolios managed by Manulife; Northern Trust builds portfolio analytics tool; American Century to launch new suite of investment solutions; and more.
Fidelity presents new model portfolios; LGIMA builds ESG strategy for DC plans; and Russell Investments announces tax-managed fund for long-term investors.
Doing so could encourage more employees to participate in the plan, sources say.
Seventy-nine percent are incorporating socially responsible investing into their practices, according to an Eaton Vance survey.
Among foundations, that is 64%, according to a Callan report.
“Providing advisers with materials that can be used to educate clients about a firm’s approach to ESG investing is crucial in increasing adviser adoption,” says Ed Louis, a senior analyst at Cerulli Associates.
A look at actively managed versus passively managed equity and bond funds, blended target-date funds, and with more sponsors encouraging retirees to remain in their plan, how defined contribution plans need to address retirement income solutions.