Returns-Based Versus Holding-Based Style Analysis

Return-based style analysis (RBSA) draws from Bill Sharpe’s style analysis model, which stipulates that a manager’s investment style can be determined by comparing the returns on a portfolio with those of a certain number of selected indices. Through quadratic optimization modeling, RBSA is an effective way to test whether a fund maintains its professed style … More Returns-Based Versus Holding-Based Style Analysis

Plan-Level Rate of Return—Useful or Useless?

  Many people use plan-level rates of return to determine the quality of an investment lineup. However, several variables may impact plan-level rates of return making them not as useful as a plan management tool. They may actually be counterproductive when trying to determine the quality of an investment lineup. As an extreme example, you … More Plan-Level Rate of Return—Useful or Useless?

Target Date Funds—Does One Size Really Fit All?

If you have ever opened a brokerage account with an advisor, you know the first step is gathering information to determine the risk profile and appropriate investment allocation for the individual. In order to determine the appropriate allocation for a client, financial advisors will inquire about income level, savings rate, net worth, time horizon, spending … More Target Date Funds—Does One Size Really Fit All?

New Definition of Fiduciary

As you are aware, in 2016 the Department of Labor (DOL) finalized regulations updating, and expanding, the definition of “fiduciary” in regards to the provision of investment advice. Originally these regulations were set to become applicable in April of this year. The current administration wanted to delay the applicable date to  allow the DOL to fully … More New Definition of Fiduciary

When Participants Retire, Should Their QDIA Retire as Well?

Many retirement plan sponsors are increasingly recognizing the benefits of allowing retired employees to leave assets in the defined contribution (DC) plan. This arrangement can be a win-win for both plan sponsors and participants. Fat retiree balances may improve plan economics, allowing plan sponsors to negotiate lower fees. And participants can take advantage of funds … More When Participants Retire, Should Their QDIA Retire as Well?

Fixed Income: A Sinking Ship or Much Ado About Nothing

Time is a powerful modifier of perception and purpose. No need to look any further than the frequent rumblings surrounding fixed income in the current rising interest rate environment. That isn’t to say the frequently touted “bond bubble” and rising interest rate topics are unimportant or overstated, it’s merely a reaction to the volume and … More Fixed Income: A Sinking Ship or Much Ado About Nothing