Dutch Pensions Go Collective

By Kerry Pechter
Today’s financial Goldilocks moment—with strong equity returns and robust fixed income yields—creates favorable conditions for the Netherlands to complete its long-planned switch from traditional private defined benefit plans to 'collective defined contribution.' 'You can almost call it a tontine,' a Dutch pension consultant told RIJ.

Research Roundup

By Editorial Staff
We feature two deep-dive research papers on private credit. One is from Victoria Ivashina of Harvard Business School and the other from a team that includes Amir Sufi, co-author of "House of Debt" (U. of Chicago, 2014.) Plus two papers on combining income annuities with private savings and a paper on the domino effect that TDF reallocations can inflict on the bond market.

Third Point Joins the Triangle, Cayman-Style

By Kerry Pechter
Another asset manager goes subtropical. Third Point Investors Ltd. established Malibu Re in the Cayman Islands, bought a Texas life insurer from Mutual of America, acquired a private credit shop, and received $25m each from Voya and ReliaStar.
Featured

Nominal SPIAs Beat Nominal DIAs—But Perhaps Not for Long

By Kerry Pechter
“DIAs may represent a more palatable hedge against longevity risk for retirees than traditional annuities, because they are cheaper and therefore provide more liquidity to retirees,” writes Morningstar's David Blanchett in a Journal of Financial Planning article.

‘Changing of the Guard’ Continues in VA Sales

By John McCarthy
MetLife is selling one-third of what it was two years ago. Prudential is selling half of what it did in the first two quarters of 2012. The biggest gainers since then include Transamerica, SunAmerica, and Lincoln. (This piece was written by Morningstar's annuity product manager.)
News

This is your brain on money

By Editorial Staff
Public television will turn its inquisitive light on the topic of behavioral finance next October 16.

Deloitte publishes annual DC benchmarking survey

By Editorial Staff
There continues to be limited interest in in-plan annuities, with 6% of plans offering this option in 2013, up from 4% in 2012. Ten percent of plan sponsors indicated they are looking into adding an accumulation annuity to their current plan.