As the new year begins to unfold, the environment for risk assets is still benign: the global economy is strong, monetary policy is accommodative, and volatility is low and steady. At this point, we don’t see excesses developing that could change that.
Stable value funds can be an investment option for risk-averse, income-oriented participants. Although the bonds that underlie stable value funds may fluctuate in value, these funds offer capital preservation in rising-rate markets, along with income, which is usually higher than money market yields.
The defined contribution (DC) community has been buzzing about lifetime-income products lately. It’s a topic that’s been dormant for several years, but there are good reasons for renewed interest.
Plan sponsors are focusing a lot on fees these days. Fees do play a part in sponsors’ fiduciary duties, but just one part. And fiduciary duty is tied to ensuring that fees are reasonable––not simply the lowest.