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 […]
Smart Beta or Strategic Beta?
Morningstar has put together the following matrix to help clarify the above, that we find very useful in our model portfolio construction:
Advisors Improve 401(k) Plan Satisfaction of Small Business Owners
Survey shows small business owners that work with a financial advisor are more satisfied with their 401(k) Plan. A recently published survey of employers regarding their 401(k) Plan offered several insights into the impact that 401(k) Plans have for employers that have between 25 and 250 employees. In summary: Plan Sponsors that work with a […]
Hallmarks of Successful Active Equity Managers
As a Firm we are proponents of combining Active & Passive managers to optimize the risk-adjusted returns. Our business is building unique, core, strategic, passive models that provide market returns or beta at a low cost. While there are many reports written about why active management does not make sense as it adds minimal value, […]
Dividend Investing
The era of ZIRP, easy money and financial repression has forced many savers/retirees to look elsewhere for yield/income. This has forced many investors to look at dividend paying stocks to capture a more predictable source of income and as a hedge against market gyrations. With the “graying” of America, it is not surprising that increasingly […]
