…aligned with the “target” year in which a participant expects to retire (2020, 2030, etc.); ideally, the target date fund’s investments will become more conservative as that date approaches. “Set it and forget it” when it comes to investment elections is a popular phrase in…
In turbulent markets, stable value investments can be an attractive choice for retirement plan participants worried about the fluctuations in the marketplace. Like any investment option, stable value funds have advantages and disadvantages. Consequently, there are circumstances where stable value funds may be a great…
…of the other company. That would include, of course, responsibility for the target company’s retirement plans. In an entity purchase, as you’d expect, the target company becomes part of the acquirer’s organization. In that case, the acquirer generally does become responsible for the target company’s…
…infrastructure, can pension funds share in the cost? A growing source of non-government funding for infrastructure has come from targeted investment funds via commitments by pension funds and other institutional (non-retail) investors. According to Pensions & Investments, global assets under management in infrastructure increased from…
Recent stock market highs have made it tempting for investors to let their portfolio “ride” the trend of these returns without adjusting their asset mix. How can investors keep their portfolio allocations from drifting too far from their desired target allocations and potentially increasing their…
…with economic recovery uncertain until the virus is contained and vaccines are available. Federal Reserve actions (Y): On March 3rd, the Fed cut its target rate by 50 basis points in an emergency move. On March 15th, the Fed, in another emergency move, cut rates…
…U.S. Aggregate Bond Index (representing investment grade U.S. bonds) returned -0.2% (-1.6% year to date); the Bloomberg Barclays Long Credit Index was down -2.7%( -6.4% year to date) and the Bloomberg Barclays U.S. Aggregate Corporate High Yield Index returned +1.0% (+0.2% year to date). …
…Exchange Traded Funds (ETFs) continue their rapid growth? While ETF assets remain a relatively small fraction of the total of passive index funds and actively managed funds, there has continued to be an explosion in ETFs. While ETF expense ratios are competitive with mutual fund…
…present value as of the determination date (the determination date is the last day of the prior plan year) of the accrued benefit of all key employees is determined and if the value of the Key Employee account balances exceeds 60% of the present value…
…cost effective contributor to current and future initiatives. One example of this coordination is “infrastructure asset recycling”. Infrastructure asset recycling involves the government raising funds through the sale or lease of public assets, such as roads and airports, to the private sector. The funds received…
…RULES APPLY TO? The rules apply to 401(k) plans, profit sharing plans, money purchase plans, pension plans, and 403(b) plans that are subject to ERISA. WHAT ARE THE EFFECTIVE DATES FOR NEW FEE DISCLOSURE RULES AND WHAT DO THE RULES ENTAIL? The effective date for…
Collective Investment Trusts (CITs) have recently gained significant traction in the plan sponsor community. What are CITs? Unlike mutual funds, CITs, also known as commingled or collective funds, are pooled investment vehicles organized as trusts and maintained by a bank or trust company. CITs are…