Some defined contribution plan investments may already include real estate investments in their underlying portfolio, but if not, plan sponsors may consider real estate investment trusts or direct real estate investments.
“For investors with long-term time horizons, international equity markets offer diversification and present a meaningful opportunity," says Nigel Bliss, with Mondrian Investment Partners.
Research explored the allocation decisions of 30,516 mixed target-date fund (TDF) investors to determine which types of investors are more susceptible to mixing TDFs and how they mix them.
Anya Krymkowski, with Cerulli, says plan sponsors can negotiate with CIT providers to receive more information on the trusts, thereby addressing the transparency issue.
A litigation firm has listed what it is investigating for potential lawsuits over target-date funds (TDFs) in retirement plans, and an ERISA attorney makes suggestions for how plan fiduciaries may avoid such suits.
One expert suggests the current yield curve inversion—often called a harbinger of recession—is due more to declining inflation expectations and the weight of negative bond yields in Europe.
An analysis from the 2019 BlackRock DC Pulse survey compares investment preferences of 403(b) and 401(k) plan sponsors and also highlights 403(b) plan sponsors’ focus on retirement income solutions.
Year-to-date, investors have favored fixed income on 186 trading days, or 86% of the trading days available, according to Alight Solutions.
"The new normal for interest rates simply means that retirement investors have to take more risk,” says Steve Foresti, CIO at Wilshire Consulting.
Until recently, the marketplace expected the U.S. and China would, year over year, continue to integrate and overlap their economic systems. Increasingly, it seems the two spheres are instead pulling apart.
Currently church and public defined benefit (DB) plans focus more on returns, and their funded status is lower than for corporate plans, River & Mercantile notes in a report.
Common biases impacting retirement plan investors include the availability bias, belief perseverance bias, confirmation bias, herding bias and more.
Alight Solutions says the steady stream of trades in one direction made for the heaviest quarter of net trading since the third quarter of 2016.
The use of index funds by plans in the BrightScope Defined Contribution Plan Database increased from 79% of plans and 16.7% of assets in 2006 to 91.3% of plans and 33.2% of assets in 2016.