Private Equity Value-Add
Replacing TDF equity allocations may improve readiness.
Tag: Private equity
Compliance News
Legislative and Judicial Actions
The DOL denies general support for private equity; the Supreme Court sends ‘Northwestern’ back to the appeals court; the PBGC funds a second failing pension; and more.
A Status Report on Private Equity in Defined Contribution Plans
It’s been a roller coaster ride for PE firms looking to break into the U.S. DC plan market.
Retirement Income and Alternative Investments
Every level of private equity investment modeled by EBRI resulted in additional 401(k) participants being able to retire at age 65 without running short of money in retirement.
Data & Research
Compliance
Deals & People
Increasing Exposures to Private Equity Boosts Retirement Security
EBRI research shows the impacts on participants’ retirement security of replacing TDF equity exposures with private equity allocations for participants who have access to a plan and invest in TDFs.
DOL Cautions Small Plan Fiduciaries Against Diving Into Private Equity Investments
The agency issued a supplemental statement in response to stakeholder concerns that private equity investments could be inappropriate for small DC plans.
Aon Aims to Sell U.S. Retirement Business to PE Firm Aquiline
The firm also intends to sell the Aon Retiree Health Exchange business to Alight, at least in part to head off potential antitrust concerns associated with its ongoing merger with Willis Towers Watson.
Products
Products
Investing
Investment Product and Service Launches
Stadion Money Management launches managed account technology; Vanguard expands access to private equity; and MSCI builds private infrastructure modeling service.
DCALTA Publishes Framework for Implementation of Private Equity in DC Plans
DCALTA says its framework addresses the key implementation challenge identified by plan sponsors: operational aspects of daily valuation of private alternative assets that do not trade on an exchange.
Managers Expect Annuity Allocations to be Incorporated Into TDFs
In addition, Cerulli says it expects that plan sponsors and retirement plan providers will engage in more exploratory discussions about including private equity in target-date funds.
Publisher’s Note
What a Year!
With so many bigger issues facing the country, much has happened that almost seems unnoticed.
ERISA vista
DOL Gives Private-Equity Guidance
401(k) plans may include the strategy as part of a diversified fund.
Investing
Investing
Compliance
Many Project Mild Interest in Private Equity Among DC Plans
The broad trend of fiduciaries pursuing the lowest cost passively managed investment options will likely temper plans sponsors’ interest in adding private equity investments, sources say.
Some Parties Question PE’s Role in DC Plans
It is common to hear that private equity (PE) has been the best performing asset class in recent years for institutional investors, but a new academic analysis challenges that idea.
DOL Issues Guidance About Private Equity Investments in DC Plans
An Information Letter addresses private equity investments as a component of a professionally managed asset allocation fund and outlines what plan fiduciaries should consider.
Products
Investing
Investing
Investing
Investing
Investment Product and Service Launches
IHS Markit adds MSCI ESG ratings and HarbourVest offers private equity with Vanguard.
Strategies for Including Private Equity in DC Plans
From an operating perspective, plans can use private investments in a multi-asset class investment vehicle.
Pondering DC Plan Access to Private Equity
An ever-greater proportion of the wealth being generated by the U.S. and global economies is locked away in private equity markets.
Study Suggests Private Equity Should be a Consideration in TDFs
The research paper not only illustrates potential return characteristics and diversification benefits, but also offers allocation strategies to guide investment decision making.
New Tactics Needed for a Low-Rate World
Investors must rethink “safe havens” in their portfolio now that bonds simply can’t offer the same combination of portfolio protection and positive income.