The universities' retirement plans were the latest to be sued by the law firm of Jerome Schlichter (pictured at his office in St. Louis) for violations of fiduciary duty. The suits charge that the schools should have bargained for lower fund expenses and administrative fees.
'Insurance Solutions' groups use private assets to boost the returns of life/annuity company investment portfolios. RIJ talks with Todd Fonner of Investcorp Insurance Solutions about this trend.
American Equity Investment Life’s ‘AEL 2.0’ strategy is designed to help it thrive even in a low yield environment. Allocating up to 40% of its money to ‘private assets’ is key to the fixed annuity specialist's plan.
A document from the NAIC's Financial Stability Task Force reflects the concerns that the NAIC has heard from a variety of sources about the increased ownership of life insurers by private equity firms. (Image from NAIC document.)
'The DOL gave it some impetus, but the real issue is that the markets are pretty much topping out,' said Great American senior vice president Malott Nyhart.
'Consistent with the rest of the industry, variable annuity sales have slowed due to market volatility and activity surrounding the U.S. Department of Labor fiduciary rule,' said Barry Stowe, Jackson's chairman and CEO.
EverBank stockholders will receive $19.50 per share in cash, or an approximate total of $2.5 billion.
The enhancement “helps advisors address the impact taxes have on retirement planning and the need for income in retirement,” said John Kennedy, head of Retirement Solutions Distribution, Lincoln Financial Distributors.
In addition to the average ETF fee of 25 basis points, Scalable Capital charges an all-in annual fee of 75 basis points, for an approximate annual expense ratio of 100 basis points (one percent).
The deal is structured as a tri-partite insurance policy between Electricity Pension Trustee Limited, Manweb (a unit of Scottish Power, which is a unit of Iberdrola) and Abbey Life, according to IPE.com.
'Trustees of pension schemes, whose deficits keep rising, are facing almost impossible investment dilemmas,' said Amlan Roy of the London School of Economics.