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More Collective Investment Trusts Being Added to DC Plans

There are now over 3,200 collective investment trusts (CITs) tracked in the Morningstar CIT database, collectively holding nearly $2 trillion according to a recent article that appeared on WealthManagement.com.  That’s up from $896 billion in 2008.  Callan Associates estimates that 71% of DC include at least one CIT in their plan up from 60% and 52% in 2014 and 2013, respectively Why are CITs becoming more popular?  Reasons included...

Of Baby Boomers, Gen X, Millennials and Gen Z

Interesting facts on America’s generational dynamics from recent WSJ blog: Generational Definitions: Greatest Generation (born before 1928) Silent Generation  (born between 1928-1945) Baby Boomers (born between 1946-1964) Generation X (born between (1965-1980) Millennials (born between 1981-1997) Generation Z ( those born after 1997) A few interesting facts on how our population is evolving: Millennials now outnumber baby boomers Generation Z is expected to surpass baby boomers and become the second largest...

DC Plans Slow to Adopt Liquid Alts…But Why?

A recent article on Wealth Management.com titled “Liquid Alts in DC Plans? Don’t Hold Your Breath” discusses the relatively slow adoption of Liquid Alts by defined contribution (DC) Plans relative to what Defined Benefit Plans (DB) have done. The arguments for liquid alts, as the article presents, include managing return and risk management, managing volatility, potentially greater diversification, and a strategy less sensitive to broader equity and fixed income...

ETF Model Solutions^TM‘ CIO Featured in Trusted Insight Magazine

Prateek Mehrotra, MBA, CFA®, CAIA®, Chief Investment Officer of ETF Model SolutionsTM, and its affiliate, Endowment Wealth ManagementTM, is featured in an exclusive interview in the most recent issue of Trusted Insight Magazine. In the article, Prateek discusses his career path, along with the vision that lead to his co-founding of the two firms’ of which he serves as Chief Investment Officer, serving clients through a multi-family service model,...

Mutual Fund Hits Investors With Huge Tax Bill

A change in the manager and a fund’s strategy may create a huge distribution to holders of the FPA Perennial Fund managed by FPA advisors, according to a story in the Wall Street Journal today.  Because the fund has changed managers and its strategy, many of the underlying holdings were liquidated to transform the fund to its new holdings.  When mutual funds sell shares of underlying securities, the short and...

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.

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...

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...