Tag: retirement plan investing

Wilmington Trust subsidiaries were found not to be fiduciaries, but other claims against the M&T Bank retirement plan committee were moved forward.

A survey revealed that 46% of Millennials think you need at least $1,000 to start investing, and 17% think you need $10,000.

The consulting firm says that few plan sponsors pay close attention to how their employees allocate their retirement savings.

Claims that survived included fiduciaries breached their duties of loyalty and prudence in their selection and monitoring of investments, fiduciaries failed to monitor other fiduciaries, plan trustees failed to remedy actions of predecessors, and the fiduciaries engaged in prohibited transactions.

Greg Porteous, head of defined contribution intermediary distribution at SSGA based in Boston, says he sees the lowering of target-date fund (TDF) investment fees as a way to attract more 403(b) plan clients for two reasons.

The lawsuit claimed the excessive compensation received by PIMCO officers through the PIMCO Total Return Fund was so disproportionately large that investment returns suffered.

Lincoln Financial Creates Personalized Target-Date Portfolios; Aon Hewitt-Managed Pooled Funds Claim Compliance with GIPS; Broadridge Financial Increases Data and Analytics Team; and more.

The lawsuit alleged that Citigroup violated its fiduciary duties under the Employee Retirement Income Security Act (ERISA) by offering and keeping affiliated funds in its 401(k) plans when better-performing, lower-cost funds were available.

The 8th Circuit ruled that the plaintiff failed to allege sufficient facts to demonstrate that the Wells Fargo TDFs were an imprudent choice.

However, there are things retirement plan advisers and sponsors can do to encourage them to take on more risk.

Investors in TDFs need to look beyond price tags to investment strategy to determine the appropriateness of the fees and should be mindful of the relatively tight dispersion of returns within TDF categories, Morningstar warns.

PGIM suggests DC plan sponsors look to the investing approach of defined benefit (DB) plans, endowments, sovereign wealth funds, insurance company general accounts, sophisticated wealth management platforms and family offices. These institutional investors focus on solutions that are believed to offer a higher probability of meeting a desired outcome.

Transamerica Launches Stable Value Account for Retirement Plans; TD Ameritrade to Provide CLS Fund Models on Market Center Platform; Fidelity Offers Third ESG Investing Option; and more.

The Investment Company Institute also found 401(k) plan participants investing in mutual funds tend to hold lower-cost funds.

Franklin Templeton Expands ETF Lineup with Three Additional Funds; Hartford Funds Launches Short-Duration ETF; First Trust Launches Actively Managed ETF; and more.

A report based on data from participants in the Schwab Personal Choice Retirement Account says 18.7% of SDBA accounts were managed by an independent investment adviser.

Millennials are more likely than Gen Xers or Baby Boomers to give the gift of help with financial obligations, such as student loan payments and bills; financial education tools; and shares of stocks, bonds, mutual funds, etc.

A MassMutual study finds Asian Americans are more thoughtful retirement investors than other demographics, but they lack education about how long they will need to make their savings last and the timing of claiming Social Security.

Offered by Alight Solutions, WealthSpark combines highly customized investment portfolios designed by AllianceBernstein (AB) with Personal Capital’s digital wealth management tools.

The airline company offered the AA Credit Union Fund as its capital preservation vehicle, which the plaintiffs in a lawsuit say yielded “tremendously” poor returns.