Services Tags: Defined Contribution

Defined Contribution Plan Legislative Update – 4Q 2020

While legislators have been focused on negotiating the next round of stimulus and dealing with the implications of the recent election cycle, the U.S. Department of Labor (DOL), as the primary regulator of the Employee Retirement Income Security Act (ERISA), has been fairly active with issuing proposed changes and final rules that may impact many of our defined contribution plan clients in the past several months.

This legislative update covers recent communications regarding private investments in defined contribution plans, proxy voting guidelines, ESG considerations (an update to an earlier Proposed Rule), and 2021 contribution limits.

Read > 4Q 2020 DC Legislative Update

 

The opinions expressed herein are those of Marquette Associates, Inc. (“Marquette”), and are subject to change without notice. This material is not financial advice or an offer to purchase or sell any product. Marquette reserves the right to modify its current investment strategies and techniques based on changing market dynamics or client needs.

 

Dave Smith Speaking at Institutional Investor Virtual Roundtable 5/21

On Thursday, May 21st, Dave Smith, CFA will be speaking at a virtual roundtable hosted by Institutional Investor’s Institutional & Alternatives Investor Institutes.

Dave will be moderating a session focused on Endowments & Foundations: “For E&Fs, the Pandemic’s Effects Reach Far Beyond Portfolio Losses. What Does the Rest of 2020 Look Like?” As many endowments and foundations are facing operational variables on top of challenges in portfolio management, the panel will explore how E&Fs are thinking about the long term in the wake of coronavirus and how E&F investors might secure liquidity from a largely illiquid portfolio.

The Roundtable will bring together health care funds, endowments and foundations, public pension plans, and insurance investors to discuss how asset allocators and investment consultants are dealing with the disruption caused by COVID-19.

For more information, please visit the Institutional Investor Institute website.

How Will the 2020 Election Affect the Markets?

The 2020 presidential election is fast approaching on November 3rd and key election issues pertaining to the economy will be viewed with respect to a backdrop of crisis and uncertainty more than ever. Curbing the spread of COVID-19 is at odds with reopening the economy while racial injustice remains a focal point. A potential Biden presidency and Democrat-controlled Senate could result in tax increases aimed at stimulating the economy through public projects and providing a social safety net. In contrast, a second term with Trump would likely mean more of the status quo in terms of keeping the 2017 tax cuts, further trade negotiations with China, and his attempt to nullify Obama’s Affordable Care Act.

In this newsletter, we assess the platforms of both Biden and Trump with a focus on Biden’s proposed tax policies and a perspective on how they are expected to affect the economy and markets. We next examine the historical effect of politics on the markets such as equity performance based on which party controls the White House, Senate, and House of Representatives. Lastly, we take a look at 2020 election expectations based on recent polls and markets.

Read > How Will the 2020 Election Affect the Markets?

 

The opinions expressed herein are those of Marquette Associates, Inc. (“Marquette”), and are subject to change without notice. This material is not financial advice or an offer to purchase or sell any product. Marquette reserves the right to modify its current investment strategies and techniques based on changing market dynamics or client needs.

Trump Bypasses Congress with Coronavirus Relief Executive Actions

This past Saturday, August 8th, President Trump issued several executive actions that serve as an emergency COVID-19 aid package. The package includes three memoranda that provide assistance for the jobless, a payroll tax deferral, and an extension of the student loan payment moratorium and an executive order that provides rental and mortgage assistance to mitigate evictions and foreclosures. The executive actions came about because of a stalled Congress as negotiations over the last two weeks fell apart last Friday, August 7th, between the Senate Republicans with their $1 trillion proposal and the House Democrats with their $3.5 trillion proposal.

This newsletter puts these executive actions into context with earlier federal stimulus packages, including an overview of how each action will be implemented and expected economic and financial impacts.

Read > Trump Bypasses Congress with Coronavirus Relief Executive Actions

 

The opinions expressed herein are those of Marquette Associates, Inc. (“Marquette”), and are subject to change without notice. This material is not financial advice or an offer to purchase or sell any product. Marquette reserves the right to modify its current investment strategies and techniques based on changing market dynamics or client needs.

Target Date Funds Education Featured in Benefits Magazine

Marquette research was featured in the December 2019 edition of Benefits Magazine. The article, To or Through: Evaluating TDF Glide Paths, explores different target date fund (TDF) glide paths and how they may affect retirement savings outcomes.

While there is much debate about whether “to” or “through” glide paths better serve plan participants, the multitude of offerings allows for a best-fit solution that can address the specific characteristics and needs of the participant group. TDFs should be evaluated according to the benefits and risk exposures of the specific fund as well as the characteristics of the group, and as the steepness and length of derisking periods have large effects on participant outcomes, glide paths are a critical component of the evaluation process.

For more of Marquette’s TDF coverage, read our white paper, Target Date Funds: Preparing Participants for Retirement.

Benefits Magazine, the monthly publication of the International Foundation of Employee Benefit Plans, covers benefit issues affecting multiemployer, single employer and public employee plan representatives.

Download PDF> To or Through: Evaluating TDF Glide Paths

 

The opinions expressed herein are those of Marquette Associates, Inc. (“Marquette”), and are subject to change without notice. This material is not financial advice or an offer to purchase or sell any product. Marquette reserves the right to modify its current investment strategies and techniques based on changing market dynamics or client needs.

 

 

Lee Martin and Kit McCarty Presenting at PSACC Conference 11/14

On Thursday, November 14, Lee H. Martin, Ph. D. and Kit McCarty, CEBS, REBC, AIF®, C(k)P® will be presenting at the Pennsylvania State Association of County Controllers Conference in Lancaster, Pennsylvania.

Lee and Kit will be participating in a roundtable discussion on 457(b) Defined Contribution Plans. The panel will cover PA County 457(b) plans specifically, including their history, benchmarking, and the RFP process and fiduciary oversight. The panel will also examine two county case studies in regards to 457(b) plan transition and engaging and educating 457(b) plan participants.

The Pennsylvania State Association of County Controllers Conference offers a variety of educational opportunities as well as a chance for Controllers, Deputies, staff, and Solicitors to share fellowship.

Second Quarter Review of Asset Allocation: Risks and Opportunities

The second quarter of 2020 proved to be as eventful as the first, with slow economic results being largely ignored as markets rallied. GDP growth for the quarter is expected to come in at -35.5% YoY, though 3Q GDP projections indicate a significant rebound is expected as the country begins to reopen to “the new normal.” In addition, the unemployment rate came in at 11.1%, down from the April peak above 14%. Below are some highlights from the quarter:

  • Countries around the globe began reopening businesses amid fears of a second wave of COVID-19 infections.
  • Daily infections reached a new high in the United States at more than 50,000 per day, causing some states to roll back their reopening plans.
  • Weekly initial claims for unemployment insurance have continued to trend downwards.
  • Additional fiscal and monetary stimulus are expected in the second half of the year, bolstering markets.

COVID-19 has proven to be a potentially long-lasting concern as it remains to be seen whether we are in for a V-shaped or U-shaped recovery. Economic data is improving slowly, though markets have seemed to shrug off some of the negative news as the S&P 500 moved into positive territory over the one-year period. Though it may have fallen into the background due to COVID-19, 2020 is a presidential election year. Uncertainty surrounding the election will undoubtedly have an impact on forward-looking expectations. In this newsletter, we analyze what all of this means for each asset class.

Read > Second Quarter Review of Asset Allocation: Risks and Opportunities

 

The opinions expressed herein are those of Marquette Associates, Inc. (“Marquette”), and are subject to change without notice. This material is not financial advice or an offer to purchase or sell any product. Marquette reserves the right to modify its current investment strategies and techniques based on changing market dynamics or client needs.

Financial Factors in Selecting Plan Investments Proposed Rule

On June 23rd, 2020, the U.S. Department of Labor released a proposal to amend certain fiduciary regulation around the consideration of economically targeted investments, or those that incorporate environmental, social, and governance factors.

The purpose of this legislative update is to provide some background on ESG integration and the subsequent DOL guidance on these issues as well as a summary of the Proposed Rule and its impact on ERISA plans.

Read > Financial Factors in Selecting Plan Investments Legislative Update

For additional Marquette coverage on sustainable investing, reference our recent newsletter, Sustainable Investing in a Post-COVID World, and white paper, The Future of Investing: Sustainability and ESG Integration.

 

The opinions expressed herein are those of Marquette Associates, Inc. (“Marquette”), and are subject to change without notice. This material is not financial advice or an offer to purchase or sell any product. Marquette reserves the right to modify its current investment strategies and techniques based on changing market dynamics or client needs.

Don’t Mind the Gap

On the surface it looks disjointed. We are in the midst of what is likely the worst recession since the Great Depression, but the stock market has rallied back in a matter of weeks and currently sits just 10% off all-time highs. Treasury yields appear to be pricing in an extended period of softness, and high yield spreads have only started to show signs of recovery. While the future is always an unknown, it feels as if we are facing a new level of uncertainty with many more moving parts.

In this newsletter, we explore equity market dynamics to help reconcile the apparent gap between the recent good news from equity markets and overwhelmingly negative news from the economy and bond markets.

Read > Don’t Mind the Gap

 

The opinions expressed herein are those of Marquette Associates, Inc. (“Marquette”), and are subject to change without notice. This material is not financial advice or an offer to purchase or sell any product. Marquette reserves the right to modify its current investment strategies and techniques based on changing market dynamics or client needs.

2019 Investment Symposium

 


Friday, October 4, 2019
8:00 AM – 2:00 PM

Marquette clients – Please join us at our annual Investment Symposium to discuss the current market environment, emerging investment themes, and investment stewardship challenges in the year ahead. In addition to our keynote, the event will feature a panel of portfolio managers and six flash talks by our research team that will brief attendees on popular topics and encourage timely conversations with our investment consultants.

 

Agenda 

8:00 – Registration Open/Breakfast
8:45 – Welcome and Opening Remarks by Brian Wrubel
9:00 – A Prism of Capital Market Views: Portfolio Manager Panel featuring:

John W. Rogers, Jr., Chairman, Co-CEO & Chief Investment Officer at Ariel Investments
Olga Bitel, Partner and Global Strategist at William Blair
Matthew J. Eagan, CFA, Executive Vice President and Portfolio Manager at Loomis, Sayles & Company 

10:00 – Break
10:15 – Flash Talks: Session 1

The Investment Case Behind ESG Investing and Implementation in Practice
Nat Kellogg, CFA, Director of Manager Search

Beyond Traditional Real Estate: Exploring Opportunities in Non-Core Real Estate
Jeremy Zirin, CAIA, Senior Research Analyst, Real Assets

So Many Risks, So Little Time: What’s Next in Global Risk?
Nicole Johnson-Barnes, Research Analyst

11:00 – Break
11:15 – Flash Talks: Session 2

U.S. Against the World: Should Investors Still Own International Stocks?
David Hernandez, CFA, Senior Research Analyst, Non-U.S. Equities
Samantha T. Grant, CFA, CAIA, Senior Research Analyst, U.S. Equities

Machine Learning for Investing: How is Artificial Intelligence Being Used in Asset Management?
Ben Mohr, CFA, Director of Fixed Income

Pick Your Portfolio Poison: Recession or Inflation?
Greg Leonberger, FSA, EA, MAAA, Director of Research

12:00 – Keynote Presentation by Mohamed El-Erian, Chief Economic Advisor at Allianz, Chair of President Obama’s Global Development Council, author of two New York Times bestsellers, and former CEO and co-CIO of PIMCO

2:00 – Adjourn

 

Please note our new location:

The Standard Club
320 S. Plymouth Court
Chicago, Illinois 60604
Tel: (312) 427-9100
Business casual attire required.