Legal Update – Plaintiffs’ Bar Updates New Theory
Financial services firms that cater to the retirement plan market might be excused for thinking there’s a target on their back. As attorneys from the law firm of Morgan, Lewis & Bockius explained at the 2016 SVIA Spring Seminar, the ERISA plaintiffs’ bar continues to test new theories about ways that service providers, and plan […]
Leadership: The Other Stable Value
In early April, the U.S. Department of Labor finally issued its long-anticipated new rule extending fiduciary responsibility to anybody who is compensated for providing investment advice, whether to individuals or retirement plans. In a nutshell, it requires fiduciaries to act in the client’s best interest. Sounds simple. But the so-called streamlined rule is 1,028 pages […]
New York Life Fixed Income Manager Sees Continued US Economic Growth, Fixed-Income Opportunities
It’s easy to be worried about investment risk right now. China, the world’s second largest economy, is experiencing growing pains that have sent oil and other commodity prices tumbling. China’s attempts to transition from an economy built on government infrastructure spending to one built on consumer spending is going to be tricky. Meanwhile, Japan and […]
How Gender and Generation Impact Retirement Saving
Men and women aren’t really from different planets, no matter what psychotherapist John Gray argued in his 1992 best-seller. But men and women tend to behave differently when it comes to saving and investing for retirement. In a 2015 study of male and female participants in more than 2,000 defined contribution retirement plans, researchers at […]
Stable Value in the Spotlight
Sleepy. Quiet. Those are a couple of words that have been used to describe the capital preservation arena over the years. But with money market reform, we have seen capital preservation become one of the more significant investment policy topics during defined contribution (DC) client review meetings this year. Most DC plans presently offer a […]
Stable Value Roundtable: Stable Value Industry Strong, Getting Better
The stable value industry is in great shape, according to industry veteran Aruna Hobbs. It’s healthy and vibrant, with plenty of capacity. Cash flow is stable, and the asset class continues to deliver on its promise of principal preservation and steady returns for retirement plan participants. While the trajectory of the industry is positive, like […]
Can Stable Value Funds Keep Pace with Inflation?
The financial markets have historically experienced volatility and market uncertainty, which remain key themes in today’s markets. Investors saving for retirement are challenged to find strategies to generate enough income after inflation to last through their retirement years. Even modest inflationary pressures can eat into retirement savings and reduce actual purchasing power of money. This […]
It’s no joke: High-quality bonds deserve respect
The late comedian Rodney Dangerfield used to joke about getting no respect. Fran Kinniry, a principal in Vanguard’s Investment Strategy Group, wonders whether traditional bonds sometimes suffer the same fate. Fran Kinniry”For a number of years, I’ve talked to investors and financial advisors about portfolio construction and how to increase diversification,” Mr. Kinniry said. “Whether […]
Retirement Plans Take Different Tack on Money Funds
People saving for retirement in workplace 401(k) plans may soon see changes to the lowest-risk choices on their investment menus. The adjustments—which have occurred already at some plans but are under consideration at many more, consultants said—are in response to new rules for money-market mutual funds that will take effect in October. “Prime” money funds […]
