Investing

Corporate ERISA plans were helped by a larger allocation to U.S. fixed income.

U.S. retirement plan participants favored fixed-income during the busy trading month of July. 

New Cerulli Associates research offers some timely thoughts on target-date fund customization.

“This was the fourth quarter in a row where the 60/40 portfolio beat the median plan return,” says Robert Waid with Wilshire Associates.

Pension plans need to adopt “spread acquisition strategies," according to a speaker for a webinar hosted by BlackRock.

On the fixed-income side, Strategic Insight finds active bond funds netted $6.1 billion of new investments during June 2016, “mainly on demand for muni-bond offerings.”

In addition to their own interest in boosting investment performance, investor demand is another top reason why investment managers are taking ESG issues into consideration, Cerulli finds.

ICI reports the cost of investing in equity mutual funds through 401(k) plans has declined 31% since 2000.

Institutional investors, such as pension plans, widely use securities lending, but a survey also found interest from DC plan sponsors.

"Pre-retirees now need to plan on having nearly 10% more in retirement savings than before, in order to buy the same level of deferred income,” BlackRock warns.

Real estate managers continue to have the largest share of pension fund assets, a survey finds.

The study, sponsored by the National Association of Real Estate Investment Trusts, found REITs outperformed other asset classes.

“We are reaching out to our clients and pointing out that over the long term, the world survives. These short-term events don’t last, so don’t speculate on outcomes...

Outflow pressures from active large-cap and growth oriented strategies continued, says Strategic Insight.

Keeping it simple for participants, paying attention to fees, and considering money market reform are transforming DC plan investment menus.

The use of stable value funds within defined contribution plans has evolved substantially in recent years and decades, with more changes right around the corner. 

The growth will be “driven by the continued discovery of new and more sophisticated applications for the funds across investment portfolios,” says Andrew McCollum with Greenwich Associates.

The industry has made much more headway on improving participant portfolio construction, says Jean Young with the Vanguard Center for Retirement Research.

Market volatility and funding relief allowing lower required contributions have impacted the value of LDI and other pension plan de-risking strategies, SEI says.

Morningstar Investment Management believes the first order of business for sponsors and their retirement plan advisers when selecting the appropriate glide path for their plan’s demographics is to...