401(k) Specialist Issue 1 - 2016 - 40
THE FUND WATCH
401(k) Funds Flee
for Foreign Shores
IS IT A HARBINGER of things to come? 401(k) funds followed their
worst week since the August correction earlier this year with an
even worse week that followed. In a possible sign of consumer
confidence in the U.S. economy overall (or lack thereof), the Investment
Company Institute found investors are fleeing domestic
mutual funds in favor of overseas options.
ICI reports investors moved $3.2 billion into funds that specialize
in foreign shares in the latest weekly period.
Specifically, equity funds had estimated outflows of $1.56
billion for the week, compared to estimated outflows of $2.42
billion in the previous week. Domestic equity funds had estimated
outflows of $4.76 billion, and estimated inflows to world equity
funds were $3.20 billion.
Bond funds had estimated outflows of $527 million, compared
to estimated inflows of $55 million during the previous week.
One Product's
Surprising Return
to the 401(k) Lineup
DON'T CALL IT A COMEBACK. Recent money market regulatory changes have plan
sponsors and advisors looking for suitable alternatives, and stable value may be it
(see stable value feature on page 26).
Despite a rocky road for the product recently, " a growing numbers of plan
sponsors and intermediaries may be open to embracing stable value in the coming
years, " according to a new white paper from Prudential Retirement.
Highlights include:
* The top two reasons for stable value adoption were capital preservation and
steady returns
* 54 percent of plan sponsors and 75 percent of intermediaries cited capital preservation
as their main reason for adoption
* Stable value recommendations were primarily based on three factors: 1) the
returns the asset class delivered versus other fixed-income investments 2) their
role in boosting plan participation and deferral rates, and, 3) for the intermediaries,
their liquidity for participants.
The white paper also found that another reason for non-adoption might be that
stable value is less well known than other investment options, including money
market funds and mutual funds-and familiarity is a key driver of acceptance for
most investment products in the marketplace.
40 ISSUE 1 2016 | 401kSpecialistmag.com
http://www.401kSpecialistmag.com
401(k) Specialist Issue 1 - 2016
Table of Contents for the Digital Edition of 401(k) Specialist Issue 1 - 2016
Table of Contents
401(k) Specialist Issue 1 - 2016 - Cover1
401(k) Specialist Issue 1 - 2016 - Table of Contents
401(k) Specialist Issue 1 - 2016 - 1
401(k) Specialist Issue 1 - 2016 - 2
401(k) Specialist Issue 1 - 2016 - 3
401(k) Specialist Issue 1 - 2016 - 4
401(k) Specialist Issue 1 - 2016 - 5
401(k) Specialist Issue 1 - 2016 - 6
401(k) Specialist Issue 1 - 2016 - 7
401(k) Specialist Issue 1 - 2016 - 8
401(k) Specialist Issue 1 - 2016 - 9
401(k) Specialist Issue 1 - 2016 - 10
401(k) Specialist Issue 1 - 2016 - 11
401(k) Specialist Issue 1 - 2016 - 12
401(k) Specialist Issue 1 - 2016 - 13
401(k) Specialist Issue 1 - 2016 - 14
401(k) Specialist Issue 1 - 2016 - 15
401(k) Specialist Issue 1 - 2016 - 16
401(k) Specialist Issue 1 - 2016 - 17
401(k) Specialist Issue 1 - 2016 - 18
401(k) Specialist Issue 1 - 2016 - 19
401(k) Specialist Issue 1 - 2016 - 20
401(k) Specialist Issue 1 - 2016 - 21
401(k) Specialist Issue 1 - 2016 - 22
401(k) Specialist Issue 1 - 2016 - 23
401(k) Specialist Issue 1 - 2016 - 24
401(k) Specialist Issue 1 - 2016 - 25
401(k) Specialist Issue 1 - 2016 - 26
401(k) Specialist Issue 1 - 2016 - 27
401(k) Specialist Issue 1 - 2016 - 28
401(k) Specialist Issue 1 - 2016 - 29
401(k) Specialist Issue 1 - 2016 - 30
401(k) Specialist Issue 1 - 2016 - 31
401(k) Specialist Issue 1 - 2016 - 32
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401(k) Specialist Issue 1 - 2016 - 35
401(k) Specialist Issue 1 - 2016 - 36
401(k) Specialist Issue 1 - 2016 - 37
401(k) Specialist Issue 1 - 2016 - 38
401(k) Specialist Issue 1 - 2016 - 39
401(k) Specialist Issue 1 - 2016 - 40
401(k) Specialist Issue 1 - 2016 - 41
401(k) Specialist Issue 1 - 2016 - 42
401(k) Specialist Issue 1 - 2016 - 43
401(k) Specialist Issue 1 - 2016 - 44
401(k) Specialist Issue 1 - 2016 - Cover3
401(k) Specialist Issue 1 - 2016 - Cover4
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