UNDERSTANDING 401(k) PLAN FEE STRUCTURES AND INVESTMENT TRENDS
|
|
- Marcia Sutton
- 5 years ago
- Views:
Transcription
1 UNDERSTANDING 401(k) PLAN FEE STRUCTURES AND INVESTMENT TRENDS Presentation for the Plan Sponsor Council of America s 68th National Conference Holly Verdeyen, CEBS, Director, Defined Contribution, Russell Investments Robert E. Pike, CFA, AIF, President & Chief Investment Officer, Stratford Advisors Inc. Ty Parrish, C(k)P, CIMA, GFS, Managing Partner, Blue Prairie Group OCTOBER 15, 2015
2 Ty Parrish Blue Prairie Group
3 Retirement plan fee basics and best practices Discussion topics Understanding your responsibility as a fiduciary Fee trends A review of fee components and price drivers of your plan Pricing structure considerations Benchmarking your fees 3
4 What are the duties of a fiduciary? Original text: Fiduciaries have important responsibilities and are subject to standards of conduct because they act on behalf of participants in a retirement plan and their beneficiaries. These responsibilities include: Acting solely in the interest of plan participants and their beneficiaries with the exclusive purpose of providing them benefits Carrying out their duties prudently Following the plan documents (unless inconsistent with ERISA) Diversifying plan investments Paying only reasonable plan expenses Source: 4
5 What does the DOL say about 401(k) fees? Fees need to be reasonable, not low Fees should not be considered in a vacuum This determination needs to be made at the Service Provider Level 5
6 Factors to consider Quality of Provider Fees Cost Drivers vs. Value Factors 6
7 Lessons learned from Tibble vs. Edison ERISA fiduciaries have a continuing duty to review the investments in the plans for which they are responsible Fiduciaries should regularly benchmark the fees to insure reasonableness Fiduciaries should document their decisions and the rationale for such decisions 7
8 Components of plan costs Administrative Fees Investment Fees All costs associated with managing the investments Almost Always paid for by plan participant Services to operate the plan: Recordkeeping, Trustee, Compliance, Communications Paid for by plan sponsor and/or participant Plan Consulting Fees Advisory fees paid to a registered investment advisor or commission paid to a broker Paid for by plan sponsor and/or participant 8
9 How fees are being charged across the industry? Source: Transamerica Report on Retirement Plans
10 Pricing drivers Primary Average account balance Total plan assets Total head count Secondary Use of auto features # of locations Higher participant and employer contributions Other business with service provider Allocation in stable value/fixed income vehicles 10
11 Basis points fee charged through plan investments Based on account balance & investment allocation Revenue sharing vary by vehicle/share class Higher account balance participants may subsidize lower account balances Participants in higher revenue share investments may subsidize participants in lower revenue share investments 11
12 Basis point fee charged through plan investments Pro-rated based on account balance Fee Levelization All investments have the same revenue share/wrap fee Higher account balance participants may subsidize lower account balances Keeps fees reasonable for new employees/lower account balances 12
13 Flat dollar fee charged to participant s account Option #1: Evenly distributed per employee Allows for use of investment manager s lowest cost structure Eliminates participant subsidization Full fee transparency New and low balance participant considerations Option #2 Pro-rated based on account balance Allows for use of investment manager s lowest cost structure Higher account balance participants subsidize lower account balances Full fee transparency 13
14 Benchmarking Best Practices 14
15 Benchmarking Best Practices Hire third parties to conduct benchmarking Compare fees to third party benchmarks annually including: Investments Administration Advisor fees Total costs Conduct RFI every three years Save documentation to fiduciary vault Know the minimum required revenue needed from your recordkeeper Recapture excess revenue in ERISA bucket Look for opportunities to move to a lower investment share class 15
16 Holly Verdeyen Russell Investments
17 Plan sponsor fee initiatives in 2015 WHAT STEPS AROUND FEES ARE YOU MOST LIKELY TO ENGAGE IN NEXT YEAR? Very likely Somewhat likely Somewhat unlikely Very unlikely REBATE PARTICIPANT FEES CONDUCT A FEE STUDY RENEGOTIATE RECORDKEEPER FEES SWITCH TO LOWER FEE SHARE CLASSES CONDUCT A RECORDKEEPER SEARCH CHANGE THE WAY FEES ARE PAID CONDUCT A TRUSTEE/CUSTODIAL SEARCH Source: 2015 Callan DC Trends page 47
18 Be deliberate in your choice of investment vehicles Separate accounts Commingled funds Mutual funds Guideline flexibility Negotiable fees Handle limited scale Brand recognition
19 The attraction of institutional fees 100 US equity fees 90 Fee (bps) Retail Gap Institutional Gap Mandate Aggregation Future Growth Mutual Fund Universe Median Mutual Funds Used By 401(k) Plans* 40 Commingled Fund Universe Median Mandate Size ($M) *ICI Research Perspective, August 2015, The Economics of Providing 401(k) Plans: Services, Fess and Expenses (Domestic stock, asset weighted average) Data Source: evestment, LLC, September 2014 (US large cap core equity) unless otherwise noted
20 How do I know which vehicles my plan is eligible for? Mutual fund (institutional shares) TYPICAL MINIMUM INVESTMENT: I share $10,000 Y share $10 million R share none CONSIDERATIONS: Minimums may be assessed on plan level or platform level Collective investment trust TYPICAL MINIMUM INVESTMENT: $5-10 million CONSIDERATIONS: Minimums may be flexible or waived Your recordkeeper or consultant may have special arrangements Separate account TYPICAL MINIMUM INVESTMENT: $25-$50 million CONSIDERATIONS: Additional costs such as custom fund accounting p.20
21 Investors are paying less for target date funds Average of Industry s Asset-Weighted Expense Ratio Target-Date Mutual Funds Percent [VALUE]% [VALUE]% [VALUE]% [VALUE]% [VALUE]% [VALUE]% [VALUE]% Source: Morningstar 2015 Target-Date Fund Landscape Report, April 7, Historical asset-weighted expense ratios of the 57 target date fund series included in Morningstar s database.. p.21
22 Fiduciary risk and lawsuits are the top reasons sponsors go passive, but is passive actually the safe option? 60% 48% 40% 26% 20% 17% 9% 0% Alleviate threat of lawsuits Fiduciary concerns Do not believe that active managers outperform Cost of investments is the most important factor -20% Source: Cerulli Retirement Markets
23 All passive DC plans: Whose interest do they serve? Current fee scrutiny is not generally about fee levels, but appropriate fee monitoring and benchmarking Investment objective must remain primary focus - make the active/passive decision at the asset class level, not the plan level Focus on a fund s value in terms of meeting retirement income objectives, not on absolute fee levels Most institutional investors mix active and passive management why would you not do the same for participants? There is no such thing as a total passive solution Source: Russell DC Practice 23
24 Important Information THIS CONFERENCE MATERIAL WAS CREATED BY RUSSELL AS AN EDUCATIONAL TOOL, AND IS NOT FOR FURTHER DISTRIBUTION Nothing contained in this material is intended to constitute legal, tax, securities, or investment advice, nor an opinion regarding the appropriateness of any investment, nor a solicitation of any type. The general information contained in this publication should not be acted upon without obtaining specific legal, tax, and investment advice from a licensed professional. Copyright 2015 Russell Investments. All rights reserved. This material is proprietary and may not to be reproduced, transferred or distributed in any form without prior written permission from Russell Investments. It is delivered on an "as is" basis without warranty. Russell Investments is a trade name and registered trademark of Frank Russell Company, a Washington USA corporation, which operates through subsidiaries worldwide and is part of London Stock Exchange Group. First Used: September 2015 USI
25 Robert E. Pike Stratford Advisors Inc.
26 IMPORTANT LEGAL INFORMATION This presentation is intended solely for information purposes and is not to be construed, under any circumstances, by implication or otherwise, as an offer to sell or a solicitation to buy or sell or trade in any securities herein named. Information is obtained from sources believed to be reliable, but is in no way guaranteed. No guarantee of any kind is implied or possible where projections of future conditions are attempted. In no event should the content of this presentation be construed as an express or implied promise, guarantee or implication by or from Stratford Advisors, Inc., or any of its officers, directors, employees, affiliates or other agents that you will profit or that losses can or will be limited in any manner whatsoever. Past results are no indication of future performance. All investments are subject to risk which should be considered prior to making any investment decisions. The firm may hold for its clients, Principals or employees, positions in any securities mentioned herein, and may buy or sell such securities at any time without prior notice.
27 Price vs. Value: Separate all costs first Source: The Adviser Lab, LLC. Fund expenses are manufacturing costs which produce a common product: return on investment Service costs include many components that are not easily captured in return on investment
28 Every basis point matters Small changes in returns can equal the entire starting value or more over time Costs savings and return enhancements can improve retirement readiness
29 Expense ratios of actively manage & index funds (in basis points) Source: 2015 Investment Company Fact Book. NOTE: Expense ratios are measured as asset weighted averages; excludes mutual funds available as investment choices in variable annuities and mutual funds that invest in other mutual funds. Trend towards lower fees has been very consistent over time, across all vehicles Active funds cost more than passive, and their fee reductions have not been proportionately as great
30 All-in expenses represent true cost Source: The Arithmetic of All-In Investment Expenses John C. Bogle, Financial Analysts Journal, Vol. 70, No. 1 (Jan-Feb 2014) Active fund portfolio turnover a good indicator of transaction costs Active funds must always hold cash to meet shareholder redemptions Sales charges/fees include advice, consulting, anything outside the investment vehicle
31 Shift to passive funds is clear Morningstar.com Active funds have over $3.8 trillion in assets Passive funds currently have $2.5 trillion in assets and are expected to reach parity with active
32 Expense ratios are the best predictor of future performance If there's anything in the whole world of mutual funds that you can take to the bank, it's that expense ratios help you make a better decision. In every single time period and data point tested, low-cost funds beat high-cost funds. Expense ratios are strong predictors of performance. In every asset class over every time period, the cheapest quintile produced higher total returns than the most expensive quintile. Russel Kinnel, Director of Fund Research, Morningstar How Expense Ratios and Star Ratings Predict Success, 08/10/2010 Consider only lowest quintile/quartile funds for inclusion in DC plans Can be applied to both active and passive funds
33 Percent of active funds underperforming benchmark Source: S&P Dow Jones Indices, SPIVA U.S. Scorecard YE 2014 Vast majority of active funds fail to deliver excess return after fees Certain fund categories offer better probability of success
34 Is beating the benchmark the right measure of success? Passive funds reflect the entirety of declines/drawdowns Cost savings dwarfed by amount of decline Participants need help
35 Gap between fund and investor returns Source: Research Affiliates based on Kinnel (2014) Emotionalism and market timing are the participants worst enemies Can seriously and directly impair retirement readiness
36 Few participants are equipped to manage their retirement investments It s a real stretch to ask people to acquire sufficient financial expertise to manage all the investment steps needed to get to their pension goals You d no more require employees to make those kinds of decisions than an automobile maker would dump a pile of car parts and a technical manual in the buyer s driveway with a note that says Here s what you need to put the car together. If it doesn t work, that s your problem. Robert C. Merton, The Crisis in Retirement Planning, Harvard Business Review, July-August 2014
37 Participants using help are better off Source: Help in Defined Contribution Plans: (Financial Engines/Aon Hewitt) Help is defined as target-date funds, managed accounts, or online advice Average annual performance advantage net of fees was 3.32% per year Custom solutions emerging (MACS, TDF 3.0, CIT)
38 Core/satellite approach common for institutions Source: First Eagle Funds Blend of passive & active with unconstrained (go-anywhere) mandate Utilizes both short term (tactical) and long term (strategic) positioning
39 Real 10 year expected risk and return Source: Research Affiliates Today s core investments offer poor prospects going forward
40 US University endowment s asset allocation Percent Alternatives Real Estate Common Preferred Bonds Year Source: British Origins of the US Endowment Model Elroy Dimson & David Chambers, Financial Analysts Journal, Vol. 71, No. 2 (March-April 2015) The smartest guys in the room already know this
41 This is the challenge for everyone Source: Research Affiliates Historical returns unlikely to be repeated over next 10 years Imperative to provide DIA s that alleviate these types of outcomes
42 Expanded opportunity set allows for higher real returns Source: Research Affiliates Non-traditional/non-core asset classes have healthier return profiles Investment vehicles growing but industry still in nascent phase
43 Alternative strategies can provide ballast during bear periods Source: EMC Capital Advisors LLC Higher costs more than offset by return differential Sophisticated strategies unavailable to retail saver/investor Diminishes primary risk to retirement savers of timing, magnitude, and length of drawdowns
44 Alternative growing rapidly Source: Strategic Insight, Forward, and Morningstar as of 6/30/14. Inflows into liquid alts were over $20 billion in 2014 according to Morningstar Total assets now over $300 billion, up from $25 billion in 2005 Wide variety of vehicles and strategies, not a uniform category
45 Evolution of target design Source: Alliance Bernstein, Designing the Future of Target-Date Funds: A New Blueprint for Improving Retirement Outcomes, June 2015 First generation TDF s still dominate DC plans DOL encourages inquiry around custom or non-proprietary TDF s
46 Conclusion Benchmark plan fees annually and save documentation Conduct RFI every three years to gain true gauge of competitiveness Look for opportunities to move to a lower share class or collective investment trust on Investments Consider a thoughtful blend of active and passive to manage overall plan cost Offer a well diversified, institutionally-priced, TDF suite to help participants navigate the complexities of global markets Participants want and need help to navigate market complexities Passively managed funds are not necessarily the safe fiduciary option Poor return prospects going forward suggest an urgency to adopt more institutionally based (risk controlled) solutions 46
Benefit from a new fiduciary approach
RUSSELL INVESTMENTS DEFINED CONTRIBUTION FIDUCIARY OUTSOURCING SERVICES Benefit from a new fiduciary approach INVESTED. TOGETHER. New challenges require new solutions In a world where many employees will
More informationSophisticated investments. Simple to use.
TARGET DATE STRATEGY FUNDS Sophisticated investments. Simple to use. INVESTED. TOGETHER. Now your default option can be your best option. If your target date funds are projected to be the majority of your
More informationSTRATEGIC. Sophisticated investments. Simple to use. Target Date Strategy Funds. russellinvestments.com
STRATEGIC Sophisticated investments. Simple to use. Target Date Strategy Funds russellinvestments.com Finding the right target date fund options is key. If your target date funds are projected to be the
More informationFiduciary Responsibilities and Oversight for Deferred Compensation Retirement Plans
Fiduciary Responsibilities and Oversight for Deferred Compensation Retirement Plans Denise Fortune- Regional Sales Director May 10, 2017 FOR INSTITUTIONAL USE ONLY. Not for public distribution. Discussion
More informationClick to edit Master title style New Ballgame for 401k Plans
Click to edit Master title style New Ballgame for 401k Plans Is Your Plan Advisor an Asset or Liability? Speakers: Ty Parrish Senior ERISA Consultant Blue Prairie Group Michael Rom Senior ERISA Consultant
More informationWhat s included in your fees and how are they calculated and presented?
OCIO provider fees What s included in your fees and how are they calculated and presented? What s included in your fees? The fiduciaries we talk to are continually telling us that one of the most confusing
More informationOvercome the Increased Scrutiny of Your Organization s Retirement Plan
Overcome the Increased Scrutiny of Your Organization s Retirement Plan Finance, HR & Business Operations Conference Washington, DC April 30 - May 1, 2013 4/30/2013 Goals for Today s Presentation Understand
More informationClick to edit Master title style New Ballgame for 401k Plans
Click to edit Master title style New Ballgame for 401k Plans Is Your Plan Advisor an Asset or Liability? Speakers: Ty Parrish Senior ERISA Consultant Blue Prairie Group Michael Rom Senior ERISA Consultant
More informationCustom Target Date Strategies: Considerations for Plan Sponsors
Custom Target Date Strategies: Considerations for Plan Sponsors May 2014 T. ROWE PRICE Investment Viewpoint EXECUTIVE SUMMARY Defined contribution plan sponsors that use target date portfolios can choose
More informationDC Plan Fee Transparency:
DC Plan Fee Transparency: Fiduciaries Managing Costs Presented by: Linda Ruiz-Zaiko, President Bridgebay Financial, Inc. ruiz-zaiko@bridgebay.com www.bridgebay.com Randy Murphy Manager, Global Equity Plan
More informationHOW TO VET TARGET DATE FUNDS
HOW TO VET TARGET DATE FUNDS Target date funds (TDFs) differ significantly in terms of asset classes, glidepath, fulfillment, and fees. It is a rich variety to choose from and at the same time may add
More informationTarget Date Fund Selection: More Than Simply Active vs. Passive
Target Date Fund Selection: More Than Simply Active vs. Passive May 2018 Not FDIC Insured May Lose Value No Bank Guarantee INVESTMENT MANAGEMENT Table of Contents Executive Summary 2 Introduction 2 Glide
More informationFramework for investment policy statement
Framework for investment policy statement Overview An investment policy statement (IPS) is a written document that provides plan fiduciaries with a framework for plan investment decisions. A well-defined
More informationIdentifying a defensive strategy
In our previous paper Defensive equity: A defensive strategy to Canadian equity investing, we discussed the merits of employing a defensive mandate within the Canadian equity portfolio for some institutional
More informationFiduciary Insights THE PROSPECTS FOR ACTIVE MANAGEMENT
THE PROSPECTS FOR ACTIVE MANAGEMENT PERSISTENT FLOWS FROM ACTIVE TO PASSIVE MANAGEMENT HAVE ALTERED THE VERY STRUCTURE OF U.S. FINANCIAL MARKETS AND RAISED A NUMBER OF ESSENTIAL QUESTIONS, INCLUDING: What
More informationCASE STUDY: Taking the Next Step in Customization
CASE STUDY: Taking the Next Step in Customization Josh Cohen, CFA, Head of Defined Contribution Jeff Eng, CFA, Director Retirement Income Ken Ingham, President & CEO, Ingham Retirement Group Important
More informationCallan GlidePath Funds Quarterly Commentary (Share Class R6)
FOR INSTITUTIONAL INVESTOR USE ONLY TRUST ADVISORY GROUP Callan GlidePath Callan GlidePath Quarterly Commentary (Share Class R6) Second Quarter 2018 Fund Category Overall 3-year 5-year 10-year Callan GlidePath
More informationNavigating the ETF Landscape
Navigating the ETF Landscape Daniel Prince, CFA Director, Head of ishares Product Consulting May 3, 2017 Agenda What are Exchange Traded Funds (ETFs) What is driving ETF usage ETF trends and innovation
More informationHIGHER EDUCATION LITIGATION UPDATE
MITIGATING FIDUCIARY RISK IN HIGHER EDUCATION RETIREMENT PLANS Background In the past few weeks, lawsuits were launched against twelve higher education institutions: Yale, NYU, Emory, MIT, Vanderbilt,
More informationCollective Investment Trusts (CITs)
Collective Investment Trusts (CITs) Use of CITs is increasingly common among defined contribution (DC) plans and for good reason. Key Points CITs are specifically designed for use within defined contribution
More informationWHO ARE YOU CALLING A FIDUCIARY? DIFFERENTIATE YOURSELF HELP YOUR CLIENTS
October 4, 2017 WHO ARE YOU CALLING A FIDUCIARY? DIFFERENTIATE YOURSELF HELP YOUR CLIENTS Jennifer DeLong Head Defined Contribution, AB This material is provided for informational purposes only and is
More informationRecent Case Studies in Fiduciary Failures
Recent Case Studies in Fiduciary Failures Why Plan Sponsors are Being Sued and the Importance of Process Recent Case Studies in Fiduciary Failures Agenda + Overview of Recent Class-Action Lawsuits + What
More informationRe-Evaluating the Use of CITs in DC Plans.
U.S. DEFINED CONTRIBUTION DISTRIBUTION 2017 Re-Evaluating the Use of CITs in DC Plans Overview & Methodology In its fourth iteration, this report examines the defined contribution (DC) market, with a focus
More informationOriginally designed as supplemental savings programs,
Retirement DC Fiduciary Focus Fees Plan sponsors face ever-increasing scrutiny, pressure and risk associated with their defined contribution (DC) plans. Although participants retirement readiness is influenced
More informationDC Best Practices Webinar Series -
DC Best Practices Webinar Series - Part 2: Lowering Total Plan Costs, Simplifying Investment Options and Reducing Fiduciary Risk Blue Prairie Group Matt Gnabasik Managing Director October 25th, 2012 Introduction
More informationUnderstanding Collective Trust Funds and Trends in the Marketplace. Sharon Ennis, SVP April 12, 2017
Understanding Collective Trust Funds and Trends in the Marketplace Sharon Ennis, SVP April 12, 2017 U.S. Total Market Retirement Trillions of dollars, end-of-period, selected periods Total U.S. retirement
More informationImproving the Target Date Fund Selection
Improving the Target Date Fund Selection INSIDE: By Chris Karam Executive Summary The target date selection process has dramatically changed over the last five years, aided by government regulations, an
More informationJanus Henderson Labs DEFINED CONTRIBUTION. Recent Case Studies in Fiduciary Failures. Why Plan Sponsors are Being Sued and the Importance of Process
Janus Henderson Labs Recent Case Studies in Fiduciary Failures Why Plan Sponsors are Being Sued and the Importance of Process DEFINED CONTRIBUTION Recent Case Studies in Fiduciary Failures Agenda + Overview
More informationHOT TOPICS FOR RETIREMENT PLAN FIDUCIARIES
Barbara Appleby, JD, MA, AIF Kristin Guibord, MBA, AIF 100 Middle Street, Portland, ME 04101 207.541.2200 HOT TOPICS FOR RETIREMENT PLAN FIDUCIARIES SECURITIES OFFERED THROUGH COMMONWEALTH FINANCIAL NETWORK
More informationAdaptive Retirement Accounts
Adaptive Retirement Accounts Frequently asked questions Overview of Adaptive Retirement Accounts... 3 1. What are Adaptive Retirement Accounts?... 3 2. Why should I consider Investing in an Adaptive Retirement
More informationRoadmap to Understanding Retirement Plan Fees. The only guide you need
Roadmap to Understanding Retirement Plan Fees The only guide you need Executive Summary Retirement plan fees under the spotlight You know there are costs associated with offering a retirement plan, but
More informationInvestment Strategy Webinar. July 17, 2013
Investment Strategy Webinar July 17, 2013 Presenters Bob Penter, CFA, Partner Pension Risk Management Phone: 770.690.7674 Email: bob.penter.2@aonhewitt.com Lucinda Downing, Sr. Research Analyst Global
More informationReal solutions designed to improve participant outcomes.
DEFINED CONTRIBUTION SOLUTIONS Real solutions designed to improve participant outcomes. INVESTED. TOGETHER. Is your DC plan keeping pace with today s DC challenges? DC PLANS ARE CHANGING. Today, many workers
More informationCan We Lower Portfolio Volatility and Still Meet Equity Return Expectations?
Can We Lower Portfolio Volatility and Still Meet Equity Return Expectations? Richard Yasenchak, CFA Senior Vice President, Client Portfolio Manager, INTECH FOR INSTITUTIONAL INVESTOR USE/NOT FOR PUBLIC
More informationA World of Change and Opportunity in 401(k) Plans
A World of Change and Opportunity in 401(k) Plans Steven Kaye, CFP, ChFC, CLU, CEBS, RHU, AAMS, CRC, AIF President AEPG Wealth Strategies 25 Independence Blvd. Suite 102, Warren, NJ 07059 Phone: 908-757-5600
More informationThe Nuts and Bolts of Public Defined Contribution Plans. Presented by: Jacob Peacock Director of Retirement Solutions
The Nuts and Bolts of Public Defined Contribution Plans Presented by: Jacob Peacock Director of Retirement Solutions Today s Topics Under Pressure Retirement Industry Trends What s Love Got To Do With
More informationGoing Beyond Style Box Investing
Going Beyond Style Box Investing NCPERS Presented by Erin Doyle Orekhov, Client Portfolio Manager May 22, 2017 For financial professional or qualified institutional investor use only. Not for inspection
More informationHow 403(b) Plans are Wasting Nearly $10 Billion Annually, and What Can Be Done to Fix It
How 403(b) Plans are Wasting Nearly $10 Billion Annually, and What Can Be Done to Fix It January 2016 Investment advice and consulting services provided by Aon Hewitt Investment Consulting, Inc., an Aon
More informationMid Cap: A Sweet Spot for Performance
EDUCATION Equity 101 CONTRIBUTORS Fei Mei Chan Director Index Investment Strategy feimei.chan@spglobal.com Craig Lazzara, CFA Managing Director Global Head of Index Investment Strategy craig.lazzara@spglobal.com
More informationHow 403(b) Plans are Wasting Nearly $10 Billion Annually, and What Can Be Done to Fix It
How 403(b) Plans are Wasting Nearly $10 Billion Annually, and What Can Be Done to Fix It January 2016 Investment advice and consulting services provided by Aon Hewitt Investment Consulting, Inc., an Aon
More informationProgress 95% Inside America s retirement plan Trends from the largest independent retirement plan provider Vol. 1 June 2014
Progress 95% Inside America s retirement plan Trends from the largest independent retirement plan provider Vol. 1 June 2014 Reading the pulse of America s retirement plan industry The retirement plan landscape
More information9 Questions Every ETF Investor Should Ask Before Investing
9 Questions Every ETF Investor Should Ask Before Investing 1. What is an ETF? An exchange-traded fund (ETF) is a pooled investment vehicle with shares that can be bought or sold throughout the day on a
More informationA SEISMIC SHIFT HOW THE DOL S FIDUCIARY RULES WILL UPEND FINANCIAL ADVICE AND WHAT ADVISORS SHOULD BE DOING RIGHT NOW TO PREPARE SPONSORED BY
A SEISMIC SHIFT HOW THE DOL S FIDUCIARY RULES WILL UPEND FINANCIAL ADVICE AND WHAT ADVISORS SHOULD BE DOING RIGHT NOW TO PREPARE SPONSORED BY O n October 7, Merrill Lynch announced the end of commissionbased
More informationWhat s in a Name: White-Label Funds in DC Plans
What s in a Name: White-Label Funds in DC Plans October 2014 Hewitt EnnisKnupp, An Aon Company 2014 Aon plc What s in a Name? That which we call a rose by any other name would smell as sweet. Much like
More informationFiduciary Considerations with Target Date Funds
Fiduciary Considerations with Target Date Funds Fees, Funds, and Glide Path November 2012 Hewitt EnnisKnupp, An Aon Company Copyright Aon plc 2012 Fiduciary Considerations with Target Date Funds Over the
More informationIs Your Alpha Big Enough to Cover Its Taxes? A Quarter-Century Retrospective
June 2018. Arnott. Is Your Alpha Big Enough to Cover Its Taxes? A Quarter-Century Retrospective 1 Is Your Alpha Big Enough to Cover Its Taxes? A Quarter-Century Retrospective Investors and their advisors
More informationEmerging Regulatory & Litigation Trends
The Next-Generation of 401(k) Fiduciary Management Joshua P. Itzoe, CFP, AIF Partner & Managing Director Institutional Client Group Emerging Regulatory & Litigation Trends 1 ERISA Fiduciary Responsibilities
More informationBring More to Your Clients. Active and passive investing: Uncover the power of AND
Bring More to Your Clients Active and passive investing: Uncover the power of AND Today, advisors face many challenges in growing their business. Cost-conscious investors Market volatility How do I cope
More informationLearning from Recent Litigation and Enforcement Actions
Learning from Recent Litigation and Enforcement Actions Discussion and Worksheet for Retirement Advisors PlanAdvisorTools.com Learning from Recent Litigation and Enforcement Actions No employer wants to
More informationUsing Options to Manage Volatility
Using Options to Manage Volatility CBOE European Risk Management Conference Scott Maidel, CFA Senior Portfolio Manager OCTOBER 2013 Important information and disclosures Russell Investment Group is a Washington,
More informationPassive target date funds: Separating myth from reality. Many active decisions go into passive fund design
Passive target date funds: Separating myth from reality Many active decisions go into passive fund design Executive summary John Greves, CFA Vice President, Head of Multi-Asset Strategies The use of passive
More informationWHAT S OLD IS NEW AGAIN
FEBRUARY 2017 WHAT S OLD IS NEW AGAIN COLLECTIVE INVESTMENT TRUSTS REDUCE DC PLAN COSTS Jennifer DeLong Managing Director and Head Defined Contribution IN THIS PAPER: It s been a decade since we first
More informationWealth Management Services
Wealth Management Services A White Paper The Case for Converting Mutual Fund Assets to Overlay August 3, 2005 Bill Martin, CFA Director, Product Development Wealth Management Services A White Paper Table
More informationConsiderations for Plan Sponsors: CUSTOM TARGET DATE STRATEGIES
PRICE PERSPECTIVE April 2015 Considerations for Plan Sponsors: CUSTOM TARGET DATE STRATEGIES In-depth analysis and insights to inform your decision making. EXECUTIVE SUMMARY Defined contribution plan sponsors
More informationOutsourcing: To Delegate or Not?
p.1 Outsourcing: To Delegate or Not? MODERATOR: Susan McDermott, Chief Investment Officer, Institutional Advisory, Pavilion Advisory Group PANELISTS: Craig Daniels, Manager of Retirement Investments, Treasury,
More informationBuilding Fee-Efficient Portfolios
Aon Investment Research and Insights Building Fee-Efficient Portfolios February 2018 Table of contents Summary....3 Fees versus...4 Implementation...5 Get beta cheaply... 5 Pay fees proportionate with
More informationTarget Retirement Performance Update
Target Retirement Update Q1 2017 CIT Strategy Highlights As of March 31, 2017 The State Street Target Retirement Collective Trust Strategies posted quarterly returns ranging from +2.44% (Income Strategy)
More informationFiduciary Considerations for Plan Sponsors - Evaluating Plan Fees
Morgan Stanley 401(k) Consulting June 2017 Fiduciary Considerations for Plan Sponsors - Evaluating Plan Fees Sam Valeo CFP, CIMA, CRPS Senior Vice President, Corporate Retirement Director, Financial Advisor
More informationSample Report PERFORMANCE REPORT I YOUR FUND
Produced on //28 Data as of 6/3/28 PERFORMANCE REPORT I 5 East 57 th Street, Floor, New York, NY 22 Tel (22) 248-532 Fax (646) 45-884 7 Seventh Avenue, Suite 2, Seattle, WA 98 Tel (26) 47-254 Fax (26)
More informationPLAN SPONSORS SPEAK WITH ACTION. The Shift from Recordkeeper Proprietary Target-Date Funds to Nonproprietary Solutions
PLAN SPONSORS SPEAK WITH ACTION The Shift from Recordkeeper Proprietary Target-Date Funds to Nonproprietary Solutions PROPRIETARY OR NONPROPRIETARY? When the Pension Protection Act (PPA) was passed in
More informationMANAGED ACCOUNTS. Industry Overview and Fiduciary Best Practices
MANAGED ACCOUNTS Industry Overview and Fiduciary Best Practices Industry Update Provider Overview CONTENT Managed Account Fees Plan Sponsor and Consultant Best Practices INDUSTRY UPDATE INDUSTRY TIMELINE
More informationWHAT IS REASONABLE? Prepared by The Wagner Law Group. Practical tips for evaluating fees and expenses of plan investments
Prepared by The Wagner Law Group WHAT IS REASONABLE? Practical tips for evaluating fees and expenses of plan investments All investments involve risk, including possible loss of principal. Important note:
More informationERISA 3(21) and 3(38) Fiduciary Services
ERISA 3(21) and 3(38) Fiduciary Services Helping you manage your fiduciary responsibility Manager research is a part of Wilshire s DNA As a plan fiduciary, you re required to navigate the landscape of
More information2017 Investment Management Fee Survey
CALLAN INSTITUTE Survey 2017 Investment Management Fee Survey U.S. Institutional Fund Sponsors and Investment Managers Table of Contents Executive Summary 1 Key Findings 2 Respondent Group Profile 4 Total
More informationAllocation Advisors Active/Passive Portfolios
Global Portfolio Management Allocation Advisors Active/Passive Portfolios An Integrated Approach to Managing Active & Passive Investments Introducing the Allocation Advisors Active/Passive Portfolios:
More informationLazard Insights. Growth: An Underappreciated Factor. What Is an Investment Factor? Summary. Does the Growth Factor Matter?
Lazard Insights : An Underappreciated Factor Jason Williams, CFA, Portfolio Manager/Analyst Summary Quantitative investment managers commonly employ value, sentiment, quality, and low risk factors to capture
More informationFiduciary Insights OCIO RFPS: ARE YOU ASKING THESE KEY QUESTIONS?
OCIO RFPS: ARE YOU ASKING THESE KEY QUESTIONS? RFPS FOR OUTSOURCED CIOS OFTEN FAIL TO ASK SOME CRITICAL QUESTIONS ABOUT THE QUALIFICATIONS OF THE OUTSOURCER AND THE NATURE OF THE RELATIONSHIP BETWEEN THE
More informationQDIA POLICIES: A Guide for Plan Sponsors
QDIA POLICIES: A Guide for Plan Sponsors INTRODUCTION Widespread adoption of automatic enrollment has significantly increased the number of Americans who are participating in company-sponsored retirement
More informationUtilization of ETFs in 401(k) Plan Line-ups
SageView Advisory Group Utilization of ETFs in 401(k) Plan Line-ups Jack Evans, AIF, Managing Director and Chief Investment Council Matt Hammonds, AIF, Managing Director of Institutional Services April
More informationABC 401(k) Plan. Benchmark Fee Report. May 19, Report created by: James Jones Advisors Inc. (410)
May 19, 2017 Report created by: James Jones Advisors Inc. (410) 296-1000 Are Your Plan s Fees Reasonable? Introduction Fees and expenses associated with the management of a qualified retirement plan have
More informationTop 10 Reasons This Remains A Misunderstood and Underutilized Asset Class. Please see last page for important disclosures.
18 INTERNATIONAL SMALL CAP Top 10 Reasons This Remains A Misunderstood and Underutilized Asset Class Please see last page for important disclosures. 1 INTERNATIONAL INVESTING IS RISKY. 2 INTERNATIONAL
More information2014 Retirement Webinar Series
2014 Retirement Webinar Series Emerging Trends in DC Investments: Learning from the Leaders Alison Borland, Clinton Cary, Winfield Evens Retirement Webinar Series February 19, 2014 1 Agenda Section 1 Section
More informationThe Case for Rethinking TDFs as QDIAs
The Case for Rethinking TDFs as QDIAs Presenters: Jake Adamczyk, Associate Vice President of Aurum Advisory Services and Mike McKeown, Director of Research at Aurum Advisory Services 6685 Beta Drive, Mayfield
More informationAn Introduction to Stable Value Funds
An Introduction to Stable Value Funds August 21, 2018 Matthew Gnabasik Managing Partner, Senior ERISA Consultant Blue Prairie Group, LLC John Faustino, AIFA, PPC Chief Product and Strategy Officer Fi360,
More informationFIDUCIARY RESPONSIBILITY AND DEFERRED COMPENSATION PLANS
FIDUCIARY RESPONSIBILITY AND DEFERRED COMPENSATION PLANS November 2017 June 9, 2017 Presented by: Frank Wan Senior Vice President Presented by: Frank Wan, Senior Vice President Burgess Chambers & Associates,
More informationFiduciary Education. Jared Martin, CFP Vice President, Consultant. October 19, 2016
Fiduciary Education Jared Martin, CFP Vice President, Consultant October 19, 2016 FIDUCIARY EXPERTISE Professional certifications which include fiduciary standards: AICPA, AIFA, AIF, ASPPA, CFA, & CIMA
More informationP-Solve Update By Marc Fandetti & Ryan McGlothlin
Target Date Funds: Three Things to Consider P-Solve Update By Marc Fandetti & Ryan McGlothlin February 2018 Target Date Funds (TDF) have become increasingly important to the retirement security of 401(k)
More informationUtilizing ETFs To Build Your Business
Utilizing ETFs To Build Your Business Capitalizing on the Popularity and Efficiencies of ETFs Chris McHaney, CFA Vice President & Portfolio Manager BMO ETFs & Global Structured Investments BMO Asset Management
More information8/13/2014. Test Drive Defining and Understanding DC Investment Vehicles
Continuing Education Credits Be sure to sign the Sign-In/Sign-Out sheet outside of the room when applying for Continuing Education Credits for the following certifications. (Check the appropriate certification)
More informationPlan Sponsor Attitudes 2017
Plan Sponsor Attitudes 2017 Eighth Edition Not FDIC Insured May Lose Value No Bank Guarantee For investment professionals and plan sponsors. Eighth Edition Survey Background 1,106 plan sponsors who use
More informationImportant information on BlackRock U.S. Debt Index Fund
Important information on BlackRock U.S. Debt Index Fund The information provided on the following pages has been provided by BlackRock, Inc. Neither TIAA nor its affiliates has independently verified the
More informationInvestment outsourcing means insourcing pension management best practices
Investment outsourcing means insourcing pension management best practices Plan sponsors are seeking strategic providers who can offer professional expertise, share fiduciary responsibility and improve
More informationFinal Regulation on Participant-Level Fee Disclosures. By: Andrew Varady, Esq. Associate General Counsel, MetLife
Final Regulation on Participant-Level Fee Disclosures By: Andrew Varady, Esq. Associate General Counsel, MetLife Contents 1 Introduction 2 Background 2 New Participant-Level Fee Disclosure Requirements
More information9/4/2015. Leveraging Regulatory Changes to Engage Employees BALANCING ROLES, RESPONSIBILITIES AND RISK INTRODUCTION: MONEY MARKET FUND REFORM
Leveraging Regulatory Changes to Engage Employees BALANCING ROLES, RESPONSIBILITIES AND RISK INTRODUCTION: MONEY MARKET FUND REFORM Presented by: Michael Brown, Managing Partner 600 108 th Ave NE, Suite
More informationTarget Date Funds. TDFs: Due diligence is more than set and forget for plan sponsors
Target Date Funds TDFs: Due diligence is more than set and forget for plan sponsors TDFs: Due diligence is more than set and forget for plan sponsors The recent DOL fact sheet on Target Date Funds ( Tips
More informationThe Hidden Challenges of Customization
The Hidden Challenges of Customization Moderator: Eileen Kwei, Director, Artisan Partners Speakers: Jeffrey Coons, President, Manning & Napier Craig Keim, Director, DC Investment Relationship Management
More informationINSTITUTIONAL INVESTMENT & FIDUCIARY SERVICES: Investment Basics: Is Active Management Still Worth the Fees? By Joseph N. Stevens, CFA INTRODUCTION
INSTITUTIONAL INVESTMENT & FIDUCIARY SERVICES: Investment Basics: Is Active Management Still Worth the Fees? By Joseph N. Stevens, CFA INTRODUCTION As of December 31, 2014, more than 30% of all US Dollar-based
More informationCurrency Perspectives Expect greater uncertainty. Shay Kshatriya, CFA Director, Canadian Strategies
Currency Perspectives Expect greater uncertainty Shay Kshatriya, CFA Director, Canadian Strategies JUNE 2015 Important Information Commissions, trailing commissions, management fees and expenses all may
More informationImportant information on BlackRock Strategic Completion Non- Lendable Fund
Important information on BlackRock Strategic Completion Non- Lendable Fund The information provided on the following pages has been provided by BlackRock Institutional Trust Company, N.A.. Neither TIAA
More informationWhy Use Smart Beta in DC?
Smart Beta for DC Smart Beta for DC Why Use Smart Beta in DC? Increasing numbers of our DC clients are looking to us to help them use smart beta solutions in their schemes. Offering improved risk-adjusted
More informationIn With the New, Out With the Old: A Flood of Quasi Fiduciary Rules Coming fi360 Inc. All Rights Reserved.
In With the New, Out With the Old: A Flood of Quasi Fiduciary Rules Coming Blaine Aikin, AIFA, CFP, CFA Fi360 & CEFEX, Executive Chairman Duane Thompson, AIFA Fi360, Senior Policy Analyst Fiduciary Standard
More informationVoya Target Retirement Fund Series
Voya Target Retirement Fund Series The Target Date Choice to Help Keep Retirement Goals on Track Holistic Retirement Solution Sophisticated Glide Path Design Open Architecture Approach Blend of Active
More informationPAG Report. The Myths and Realities of Rate Reset Preferred Shares. ScotiaMcLeod Portfolio Advisory Group. Portfolio Advisory Group
Portfolio Advisory Group PAG Report ScotiaMcLeod Portfolio Advisory Group February 24, 2014 The Myths and Realities of Rate Reset Preferred Shares February 24, 2014 1 PAG Report The Myths and Realities
More informationComprehensive Retirement Plan Services Presented Exclusively for: Sample Corporation
Comprehensive Retirement Plan Services Presented Exclusively for: Sample Corporation Today s Agenda Who we are Our mission, values, and team Scope of services Due diligence, education, fiduciary fitness,
More informationFIDUCIARY CONSIDERATIONS FOR INVESTMENT VEHICLE SELECTION. Todd Stewart, CFA Director, Investment Research. December For Institutional Use Only.
FIDUCIARY CONSIDERATIONS FOR INVESTMENT VEHICLE SELECTION Todd Stewart, CFA Director, Investment Research December 2016 For Institutional Use Only. 1920 Main Street, Suite 800, Irvine, CA 92614 T 949.955.1395
More informationProof Is in Performance Thru 3Q17
Proof Is in Performance Thru 3Q17 Model Portfolios 3Q17 PERFORMANCE UPDATE Trust We deliver the whole truth by incorporating critical data from the Financial Footnotes and MD&A that other firms miss. Performance
More informationInvestment Strategy Webinar. December 18, 2013
Investment Strategy Webinar December 18, 2013 Presenters John Thompson, Partner Institutional Advisory Solutions Phone: 312.381.1274 Email: john.thompson@aonhewitt.com Eric Friedman, Associate Partner
More informationLaunching a New Line of Business to Serve Plan Sponsors and Their Participants
PROFILES IN EVOLVING BUSINESS MODELS Launching a New Line of Business to Serve Plan Sponsors and Their Participants An advisory firm formalizes its support for retirement plans to diversify its revenue
More informationBeyond active vs passive
Beyond active vs passive Barbara Vintcent For professional clients / qualified investors only Why The Art of Indexing? Institutional US domiciled funds: AUM split by ETPs, index and active funds 100% Institutional
More informationMUTUAL TRADABLE DURING THE DAY. ETFs
TOOL KIT Exchange Traded Funds (ETFs) can help change the way you manage your investments. ETFs combine features of mutual funds and stocks, offering you diversified, efficient, cost-effective and transparent
More information