Sorry to Burst Your Bubble

A look at the way bond funds recover from rate hikes and a review of the effect of rate hikes in the 1970s and 1980s on bond funds shows that fears of a bond bubble may be overblown.

‘SIMON’ Makes Indexed Annuities Simpler

Originally a platform for distributing structured notes to broker-dealers, SIMON is adding index-linked annuities to its product suite. Prudential is both an investor and, as of today, a product provider.

Annuities and the Charles Schwab Deal

Most of the annuities now on the Charles Schwab and TD Ameritrade platforms are offered by mutual or foreign-owned life insurers. Lincoln Financial is the sole exception.
Featured

$300 billion parked with former employers

After leaving a job and a 401(k) plans, most Americans take five years or more to move their retirement savings into a rollover IRA, according to a new survey of former participants by Cogent Research.

Meir Statman recommends mandatory national DC plan

“It is time to switch from libertarian-paternalistic nudges to fully paternalistic shoves,” writes Meir Statman, a professor of finance at Santa Clara University, in the draft of a new paper called, “Retirement Income for Non-Savers.”
News

What’s good for General Motors…

More than one-third (39%) of 230 U.S. DB plan sponsors representing almost five million employees told Aon Hewitt they are “somewhat” or “very likely” to offer lump-sum payouts to terminated vested participants and/or retirees in 2013.

Russell puts its “adaptive investing” model in new TDF series

According to a Russell release this week, the Adaptive Retirement Accounts, like conventional TDFs, would be a qualified default investment alternative (QDIA) under federal regulations, but would be more customized than conventional TDFs to each participant.

Is NEST a threat to Britain’s private pension providers?

Launched last October, NEST (National Employment Savings Trust) is a government-supported defined contribution for Britain's under-savers. Changes to NEST that would make it more competitive with private plans are controversial.

US mutual fund assets near the $15 trillion mark

“Assuming modest economic expansion this year, it is plausible that annual stock and bond fund flows exceed $500 billion, more than 50% above the previous annual record,” said Avi Nachmany, SI’s director of research.