Services Tags: Defined Contribution

When Will the SOFRing End?

Global authorities such as the SEC, Federal Reserve, European Commission and European Central Bank are currently transitioning the market’s use of LIBOR as a base rate for floating-rate securities such as bank loans, CLOs and private credit towards the use of the current front runner as a replacement: SOFR, which stands for the Secured Overnight Financing Rate.

This newsletter explains what a base rate is and how it is used in investing, why LIBOR is being transitioned to SOFR and the key differences between the two, and when the change is expected to take effect.

Read > When Will the SOFRing End?

For more coverage on LIBOR, please see our Bank Loans Position Paper and recent Chart of the Week, The Sixth Fed Hike and Rising LIBOR.

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.

Sell in May and Go Away?

Global equity markets declined in May on a flurry of geopolitical news. As tensions persist, stocks are grasping to sustain their former rocket-like pace.

This newsletter details the recent trade and tariff announcements, their impact on the markets, and a look at what to expect in the remaining months of 2019.

Read > Sell in May and Go Away?

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.

Securing Retirement Through the SECURE Act

On May 23rd, with overwhelming bipartisan support, the Setting Every Community Up for Retirement Enhancement Act (SECURE Act) passed in the House with a 417–3 vote. The bill is the first major retirement legislation since 2006 and has 29 total changes or new provisions.

The bill will impact most workers from part-time employees to small business owners to more tenured employees. In this newsletter we have outlined some of the major changes outlined in the SECURE Act.

Download PDF > Securing Retirement Through the SECURE Act

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.

Kweku Obed Speaking on Defined Contribution Plans at 62nd IFEBP Conference 11/15

On Tuesday, November 15, Kweku Obed will be speaking on the topic of defined contribution plan investment considerations at the International Foundation’s 62nd Annual Employee Benefits Conference in Orlando.

The session will discuss:

  • The use and effectiveness of target date funds
  • How many options to include in a lineup
  • The frequency of reviewing investment options
  • What to consider when changing or eliminating options and the effects

This event is designed to educate attendees on ways to support employee benefit plans and ensure they are compliant, efficient and sustainable.

For more information, please visit the International Foundation 62nd Annual Employee Benefits Conference event page.

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Basics of Target Retirement Date Funds

Please join members of our Defined Contribution Services Group as they review the basics of target retirement date funds. This webinar is designed to educate clients on what target date funds are, how they can differ from peers, and how they can be evaluated. For additional target date fund coverage, reference our recent white paper, Target Date Funds: Preparing Participants for Retirement.

Live Webinar – Wednesday, May 22, 2019 – 1:00-1:30 PM CT

Please contact us for access to this video.

First Quarter Review of Asset Allocation

Heading into 2019, the primary risks facing financial markets were the trade war with China, the U.S. government shutdown, Brexit uncertainty, and further Fed rate hikes. However, in the first quarter the majority of these worries subsided.

In this newsletter, we analyze the current market environment with a review of recent performance and future expectations for each major asset class. As always, we caution investors to stay diversified and rebalance as appropriate. There are always potential disruptors to the financial markets and the most powerful tend to be largely unexpected. We will continue to monitor markets and developments as they occur to guide our clients to the most optimal portfolio decisions given the backdrop of program goals and risk tolerance.

Read > First Quarter Review of Asset Allocation

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.

The Latest Key Developments in the Healthcare Industry

Health systems today face significant challenges, further complicating an ever-changing landscape. Some of the most notable trends we see in the space include:

  • Higher interest rates, which impact borrowing costs as well as investment opportunities;
  • Efforts to gradually repeal the Affordable Care Act (“ACA”);
  • The emergence of value-based payment programs;
  • The advent of major vertical integrations such as CVS-Aetna;
  • A growing demand for digital healthcare

The following article summarizes these key issues for health systems and where appropriate, provides some potential solutions.

Read > The Latest Key Developments in the Healthcare Industry

With over 20 years of healthcare investment consulting experience, Marquette serves healthcare clients across a broad range of operating cultures — including health systems, stand-alone hospitals, and specialty organizations — and with a variety of focus areas — including operating funds, retirement planning, insurance, endowments, and foundations. For more Marquette coverage of the healthcare industry, please see our previous newsletter Healthcare Organizations’ Top 3 Investment Concerns for Balance Sheet Assets.

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 on NAST 529 Plan Panel 6/16

On Thursday, June 16, Dave Smith, CFA will be speaking at the National Association of State Treasurer’s Treasury Management Training Symposium in New Orleans. He will be participating in the college savings track panel “Strategic Thinking for Today’s Volatile Markets”. This panel will present a broad view of asset allocation and an appropriate mix of investment options for 529 plans. It will delve into the considerations for boards as they consider the continued needs of their participants in the face of equity volatility and negligible fixed income returns. Other panelists include Rodrigo Garcia, chief investment officer, Office of the Illinois State Treasurer.

David helps to lead 529 plan guidance for Marquette Associates and is a regular speaker on related topics. Marquette provides defined contribution consulting services for more than 95 plans with $20 billion in assets, from corporate, public and Taft-Hartley clients to nonprofit and healthcare. Based on more than 20 years of experience and research, the Marquette approach to defined contribution plan stewardship focuses on helping plan sponsors adopt a robust governance and monitoring framework.

For more information about the Treasury Management Training Symposium, please visit the NAST website.

Defined Contribution Plan Legislative Update – 2Q 2019

While 2018 saw bipartisan support for retirement savings enhancements, the proposed legislation highlighted in our previous DC Legislative Update did not progress during the lame duck session. However, many are hopeful that 2019 will be the year for major legislative reform surrounding these issues.

In this update, we summarize various pieces of legislation and recent topics of interest for DC plan sponsors:

  • Leadership Change for the House Ways and Means Committee
  • Expanding Retirement Savings Access
  • Student Loan Repayment Programs
  • Fiduciary Duty and Fees
  • Retirement Income Strategies

Download PDF> Defined Contribution Plan Legislative Update – 2Q 2019

As always, your consultant will be able to address any specific questions you may have regarding these changes. For a broader view of Marquette’s approach to defined contribution consulting, see our previous research including A Roadmap for Defined Contribution Plan Sponsors and Defined Contribution Plans: A Look at the Past, Present & Future.

 

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.

Secure Choice Views Featured in Benefits Magazine

An article by investment consultant Kweku Obed, Secure Choice: The Next Chapter in the U.S. Defined Contribution Story, was featured in the June 2016 edition of Benefits Magazine. The article discusses how several states have established or are considering establishing retirement savings plans for workers who lack access to an employer-sponsored retirement plan.

One of the newer developments in the defined contribution world, recent legislation has established secure choice programs or plans in California, Illinois, Massachusetts, Washington and Oregon. Some 20 additional states, including Connecticut, Minnesota, New York, Utah and Vermont, are exploring the adoption of secure choice legislation. Fiduciaries of these plans can take advantage of and build on defined contribution plan best practices, such as autoenrollment, autoescalation and use of target-date funds. Priority areas for secure choice fiduciaries to focus on might be negotiation of investment and administrative fees, monitoring savings and allocation trends of various participant demographics and offering guaranteed income options.

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.

Kweku is the chair of the Marquette Associates defined contribution services group. Marquette provides defined contribution consulting services for more than 95 plans with $20 billion in assets, from corporate, public and Taft-Hartley clients to nonprofit and healthcare. Based on more than 20 years of experience and research, the Marquette approach to defined contribution plan stewardship focuses on helping plan sponsors adopt a robust governance and monitoring framework.

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