Fed Leaves Rates Unchanged This Week

This week saw one of the more widely anticipated Fed announcements in recent years as investors looked to see if the “zero” interest rate environment would begin to be put behind us.  As was widely publicized yesterday, the Fed elected to do nothing based upon concerns of an economic global slowdown. First Trust’s economic team issued a report that provides the text of the Fed’s statement, along with their...

Private and Community Foundations Report Lower Returns for 2014

The 2014 Council on Foundations-Commonfund Study of Investment of Endowments for Private and Community Foundations Study™ released recently shows that private foundations reported a 6.1% return for fiscal year 2014 while community foundation portfolios returned 4.8%.  These returns declined from 15.6%, and 15.2%, respectively from 2013. Lower returns for domestic and international equities were the primary driver of the reduced results.  Of the alternative strategies in the private foundation...

Study: Managed Account Use In 401(k) Plans Adds Value

Employee Benefit Adviser is reporting the benefits that participants are suggesting that they gain through investing in managed accounts in their 401k plan. While overall usage is low, participants using them are realizing value, either in higher projected retirement wealth, lower risk exposure, or better diversification. The article was based upon a recent study by Vanguard. The entire article can be viewed on the EBA website.

Comments on Recent Equity Market Volatility

Bob Doll’s comments on recent equity market volatility share many of our same viewpoints: Possible reasons for recent market decline: Multi-month decline in earnings Widening credit spreads Economic weakness from China/devaluation of the Yuan Slowing growth and commodity price weakness (deflation fears) Fed Policy uncertainty Market technicals Investor nervousness, skepticism, and uncertainty Near term thoughts- China’s economy is slowing, but not enough to cause a global recession US economy...

3 Things Every Plan Committee Member Should Know

1. You are an ERISA fiduciary 2. As an ERISA fiduciary, your liability is personal 3. You are responsible for the actions of other plan fiduciaries. Your responsibilities are to act solely in the interest of plan participants.  Following plan documents, diversifying investments to minimize the risk of large losses, and ensuring the plan’s expenses are reasonable are all responsibilities for fiduciaries. Read more at Napa.net or  DOL.gov/EBSA .

ETF Model Solutions^TM Named Finalist for Wisconsin Innovation Awards

Appleton, WI.  August 13, 2015.  APPLETON, Wis.—ETF Model SolutionsTM and its affiliate, Endowment Wealth ManagementTM have been named finalists for the Wisconsin Innovation Awards based on their development of the Endowment IndexTM(symbol: ENDOW) and related index-based investment strategies.  The Endowment IndexTM calculated by Nasdaq OMX® has created national awareness, assisted in the development of new strategic partnerships, attracted investors in the firm, and have allowed the firms to expand their respective client bases.  The firms...

Real assets a crucial component in endowment portfolios

Real Assets, which consist of real estate, commodities, energy, infrastructure, natural resources and master limited partnerships are utilized by many of the nation’s wealthiest endowments, but individual investors can also benefit from incorporating real assets into their portfolios. Prateek Mehrotra MBA, CFA, CAIA, CIO of ETF Model SolutionsTM outlines how real assets can provide greater portfolio diversification and protection against periods of high inflation better than traditional stock and...

The Changing Retirement Landscape

At age 62, “most”   have only saved 30% of the money they need to sustain their remaining life expectancy.  However, for most people, if they continue working and retire at 70, their 401(k) balance increases the value of the average 401(k) by 86%   Source: Boston College’s Center for Retirement/Greenwich Associates                 Investment Landscape Has Changed Because real interest rates have fallen in...

“What’s In My Target Date Fund?” Isn’t The Only Question That Needs To Be Asked About TDFs

Given the large amounts of money flowing into target date funds, more effort by plan sponsors and participants should be devoted to understanding the methodology that the managers of the funds are using to manage the “glide path” of the fund.  The reason that TDFs are so popular is because of the belief that these are “set it and forget it” funds that the underlying managers are taking care...

Using Managed Accounts as Qualified Default Investment Alternatives (QDIAs)

Target Date Funds have long dominated the 401(k) Qualified Default Investment Alternatives world, but that could begin to change as participant’s financial situations become too complex for simple TDFs, and as competition drives down the fees of managed accounts. Managed accounts, while charging higher fees, allow for the use of ETFs, broader asset class allocation, and can offer a more holistic option for participants, taking into account other investments,...