The future of DC outsourcing
Outsourcing is not a fad: A real-life solution to a real-life challenge. This overview, based on our series of DC outsourcing articles, covers everything from the fundamentals (why, what, and how to outsource), contracting, and issues of residual fiduciary liability.
Hedge long first: Implementation examples
Hedge long first is an alternative approach to LDI portfolio construction. This LDI strategy will require a change in the structure of their fixed income portfolios for many plan sponsors. In this paper, we provide examples of how to implement this change.
Going passive is still an active decision: A conversation
Do you think all-passive management is the "safe fiduciary option"? A top ERISA lawyer and two Russell experts discuss several legal and investment issues facing DC sponsors considering such a move.
Are institutional investors really long-term investors?
Institutional investors are long-term investors. Well, that's the theory anyway. In practice, institutional investors pay attention to several different time horizons. Recognizing that there are multiple horizons can help investors avoid defining either success or risk too narrowly. This, in turn, can lead to better decision-making and progress evaluation.
Borrow to fund updated: Do PBGC premiums incent sponsors to borrow to fund their pension plans?
Every sponsor of an unfunded pension plan faces the choice of either funding the plan now or contributing towards reducing the unfunded amount over a period of years. The latest increase in PBGC variable premiums strengthens our belief that is generally cheaper for sponsors to fully fund their plan – even if they need to borrow money to do so.
Strategy Spotlight: Expressing a bullish view on oil and the energy sector
Investors looking to benefit from higher oil prices have a variety of instruments and strategies to choose from, such as futures, options and ETFs. Understanding each instrument's attributes and risk factors will help investors choose an instrument and strategy best designed to take advantage of their expectations of future oil prices.
Outsourcing: Prudent selection and monitoring of your outsourcing provider
You've hired an outsourced provider for your DC plan, now what? ERISA prudence litigation involving DC plans has generally concentrated on fees, prohibited transactions, and company stock. There is not a lot of court guidance on fiduciary responsibility. In other words, answering the question,"Under what circumstances might I be held liable for acting imprudently?"
Passive management and the false premise of fiduciary relief
The increase in interest among DC plan sponsors for passive funds may be, in part, based on the false premise that fiduciary oversight requirements are nearly eliminated. Yet fiduciary responsibility may not be reduced to the extent sponsors believe when selecting passive funds to include in their DC line-up.
Perspectives on risk management
10 frank conversations on risk management with institutional investors, consultants, and investment professionals