A Better Option Than Target Date Funds
An article titled “A Better Option Than Target-Date Funds” written by Prateek Mehrotra, CIO of ETF Model SoTMlutions and Endowment Wealth ManagementTM was recently published in the Industry Voices column on PlanSponsor.com. In the article, Prateek discusses the following drawbacks of TDFs: TDFs assume a “one-size fits all” and fail to take into account unique […]
Target Date Funds aren’t right for every 401(k)
A recent article that appeared on CNBC.com titled “Don’t let your 401(k) retire before you do” highlighted some of the reasons that TDFs may not be a good fit for all plan participants, including: There is not uniformity among TDFs as to their asset mix, which can change unexpectedly Individual investors may have unique circumstances that […]
New Collective Investment Fund Brings Endowment Investment PhilosophyTM/Liquid Alternatives to Defined Contribution Plans
APPLETON, WIS. — Alta Trust Company has partnered with ETF Model SolutionsTM, LLC. to launch the Endowment Collective Fund (CUSIP: 26923F105). The Endowment Collective Investment Fund (CIF) seeks to improve risk-adjusted returns of traditional two-dimensional portfolios of stocks and bonds by adding alternative investments, such as private equity, hedge strategies and real assets to create a 3-dimensional portfolio. […]
More Data Shows That Few Active Mutual Fund Managers Beat the Market
A recent article summarized data from a paper in the Financial Analysts Journal on the career paths of mutual fund managers. Not surprisingly it confirms most mutual fund managers of any tenure “generally do not outperform the market or their style benchmarks and do not display consistently superior performance.” “Even long-term managers show no ability […]
Why Endowment Funds Like Yale’s Are Doing Just Fine
The Ivory Tower geniuses atop the country’s most respected endowments have recently received a firestorm of criticism for failing to produce outsized returns during the current bull market. But investors must accept that all investment strategies experience periods of underperformance and it’s hardly a reason for endowments to hang their heads. Investors tend to have […]
3 Big Shortcomings of Target Date Funds
Asset growth in Target Date Funds (“TDFs”) in defined contribution plans has been phenomenal the past few years, primarily because the trend in plan design features such as automatic enrollment and being deemed qualified default investment alternatives. Respondents in a Callen Associates survey indicated that the total percentage of defined contribution plan assets in TDFs as of 12/31/2013 was 21.12%, […]
Time to Consider a Collective Trust?
A recent article in PLANADVISER highlights some of the benefits of Collective Trusts. The article, “Time to Consider a Collective Trust?”, John Manganaro provides an overview of Collective Trusts, how they are used, and why they are appealing alternatives to target date or balanced funds. Interest in Collective Investment Trusts (CITs), which are also known as […]
12 common 401(k) compliance errors
According to the IRS, the most common errors in connection with qualified plans, and specifically a 401(k) defined contribution plan, are as follows: Failure to update the required plan document to reflect required mandatory law changes governing 401(k) plans Failure to follow the terms of the plan document in operation, generally as to those common […]
Rapid rise of Alternative Investments
Most alternative investment assets are held by institutional investors or by accredited, high-net-worth individuals and, according to Preqin, now total $6 trillion. Alternative investments include hedge funds, managed futures, real estate, commodities and derivatives contracts. But alternative investments aren’t just for institutions any longer. According to Morningstar alternatives investment analyst Josh Charney, $38.7 billion flowed […]
New Endowment IndexTM Launched to Provide Independent Benchmark for Fiduciaries
Endowment IndexTM now available as a benchmarking tool for investors that manage multi-asset portfolios comprised of both traditional (stocks and bonds) and alternative (private equity, real assets, hedge funds) asset classes. Appleton, WI (PRWEB) May 22, 2014 Endowment Wealth ManagementTM, Inc. in collaboration with ETF Model SolutionsTM, LLC have launched the Endowment IndexTM (Symbol: ENDOW) as […]
