Tag: Markets

According to the Alight Solutions 401(k) Index, June was a slow month for trading in defined contribution plans; when 401(k) investors made trades, they tended to favor fixed income.

As an investment professional or a client, there are a lot of reasons to feel positive about the topic of environmental and socially minded investing, but new Cerulli research offers a reminder that not all “ESG” funds are created equal.

The latest though leadership from the firm asks an increasingly important question: “What should the TDF glide path look like as participants move from accumulating asset balances to spending down those balances in retirement?”

Data shared by FTSE Russell, taken from the firm’s annual smart beta survey, suggests the use of “multi-factor combination smart beta index-based investment strategies” by institutional investors has more than doubled since first measured in 2015.

The percentage of people who contributed to their Fidelity IRA in Q1 2018 increased 14% over a year ago; among Millennials, IRA contributions increased even more.

In a Q&A with BlackRock Managing Director Anne Ackerley, PLANADVISER hears about emerging opportunities to deliver retirement income solutions to DC plan participants, including through TDFs.  

“There is no such thing as a passive glide path design, and this, as well as the many other active decisions that go into the creation and management of a TDF, can translate into meaningful differences in investment risks and results, even among passive TDFs,” observes Jake Gilliam at Charles Schwab.

In its discussions with TDF managers, Mercer has found many managers say they have not aligned with the ACWI, and have continued with portfolios that display home equity bias for a number of reasons; the research also shows strong growth in passive TDF market share.

The president and CIO of Ryan Labs describes in detail the mechanics behind the firm’s new defensive bond portfolio strategy—and the way his work continues to be shaped by the Pension Protection Act and MAP-21.

The Wells Fargo/Gallup Investor and Retirement Optimism Index remains at a 17-year high, despite a clear uptick in volatility, with the index at +139 in the first quarter; the firm’s head of retirement dissects the findings for PLANADVISER readers.

Highlights from a new Natixis survey suggest reporting challenges continue to rank as top hurdle for institutions implementing ESG programs; this includes the concern that public companies may be “greenwashing” reported data to enhance their public image.

While they are less trusting of their advisers and providers, clients who identify as “online enthusiasts” have increased the amount of market risk they are taking.

"In our experience, the way bond managers speak provides insight into their true thinking, underlying skills and biases," write Brett Wander and Jake Gilliam, two investing team leaders at Charles Schwab. "When we look for bond managers as sub-advisers, there are things we like to hear, but there are also things managers say that immediately trigger our alarms."

Voya Investment Management has become the latest signatory of the Principles for Responsible Investment pledge, stepping right into a hot debate about the role of environmental and societal considerations in retirement plan investing.

In total, 1.45% of total plan balances were traded during the year, down from 2.13% in 2016, as participants chased performance within their own portfolios. 

While the equity markets have posted very strong returns in each of the last two years, investing leaders with J.P. Morgan Asset Management warn the long-term outlook remains muted.

Reporting from Insight Investment shows more than half of institutional asset owners surveyed are anticipating expanding the number of investment managers they work with.