The U.S. customized target-date fund market grew to US$430 billion at the end of 2017, according to the Defined Contribution Institutional Investment Association. The DCIIA’s inaugural survey on the market, which included data from 65 plans with a total of 673 different funds, found the majority of these funds are allocated to a mix of equities and fixed income. […]
There are major differences between what defined contribution plan sponsors are trying to communicate to members and what members hear, according to a new study by Invesco. “We believe a disconnect remains between what plan sponsors say and what participants hear,” said John Galateria, managing director and head of North America institutionals at Invesco, in a press […]
The traditional move away from equities to fixed income over a target-date fund’s glide path is too simplistic to produce optimal outcomes for members, according to Neil Walton. Speaking at the 2018 Defined Contribution Investment Forum in Toronto in September, Walton, head of investment solutions in the portfolio solutions group at Schroders Investment Management, told […]
Ensuring a glide path’s asset allocation is correct is really important since it’s going to be managing the bulk of positions for so many defined contribution plan members, according to Ruthann Pritchard, speaking at the 2018 Defined Contribution Investment Forum in Toronto in September. While the level of equity within the glide path at any given moment […]
The use of target-date funds is on the rise in Canada, with more members of capital accumulation plans being offered the investment option every year. Half of plan sponsors with defined contribution plans (50 per cent) and group registered retirement savings plans (51 per cent) allocated target-date funds as their default option in 2016, according […]
Canadian plan sponsors aren’t satisfied with the retirement products available for capital accumulation plans and aren’t especially confident their members will have the income they need in retirement, according to a new survey by Schroders. “Most people didn’t feel that what was out there was going to allow people to retire with a high enough income,” said […]
Franklin Templeton Investments Corp. is adding a suite of target-date funds to its offerings in Canada. Franklin LifeSmart is expanding to four new funds, covering new increments 2025, 2035, 2045 and 2055, adding to the current line up of 2020, 2030, 2040 and 2050. “As employee workplace savings plans continue to grow in popularity across Canada, demand for target-date funds […]
From decumulation options to investment choice, capital accumulation plan members face several challenges when they reach retirement. On the decumulation front, many members leave their assets with their final employer’s pension provider, which offers group registered retirement income funds or life income funds with well-managed investment options and lower management fees. As well, an increasing number […]
Despite his death earlier this year, Ikea founder Ingvar Kamprad’s influence lives on at the international furniture behemoth. The notoriously frugal Kamprad reportedly flew economy class, whether for company or personal travel, and drove an old Volvo. The iconic Swedish retailer remains committed to operating within the guidelines set by his 1976 treatise, “The testament of […]
When Searles Valley Minerals Inc. upgraded its pension plan offerings, the situation appeared complicated. The average age of the 761 plan participants at the Kansas-based mining company was 47, and turnover was low. With many employees anchored in their careers, lifestyles and habits, change wasn’t necessarily a priority. “Inertia can be a powerful force,” said […]