Successful defined contribution investment design how to align target-date, core, and income strategies to the PRICE of retirement
Start-to-finish guidance toward building and implementing a robust DC plan Successful Defined Contribution Investment Design offers a comprehensive guidebook for fiduciaries tasked with structuring and implementing a 401(k) or other defined contribution (DC) pension plan. More than a collection of t...
| Otros Autores: | , |
|---|---|
| Formato: | Libro electrónico |
| Idioma: | Inglés |
| Publicado: |
Hoboken, New Jersey :
Wiley
2017.
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| Edición: | 1st edition |
| Colección: | Wiley finance series.
THEi Wiley ebooks. |
| Materias: | |
| Ver en Biblioteca Universitat Ramon Llull: | https://discovery.url.edu/permalink/34CSUC_URL/1im36ta/alma991009631485206719 |
Tabla de Contenidos:
- Intro
- Successful Defined Contribution Investment Design
- Disclosure
- Contents
- Acknowledgments
- Introduction
- How This Book Is Organized-and How to Use It
- A Continuing Commitment to Meet the Need for Information
- Why Should You Read This Book?
- Part One DC Plans: A Cornerstone of Retirement
- Chapter 1 DC Plans Today: An Overview of the Issues
- Preface: A Career and a New Form of Pension Plan Are Born
- DC Plans: Becoming the New Reality . . . No Turning Back
- Setting Goals for Success: Income Replacement Targets
- Reducing DC Litigation Risk: Process and Oversight
- Who's a Fiduciary?
- How to Approach Outsourcing DC Plan Resources
- Hiring an Investment Consultant
- Getting Started: Setting an Investment Philosophy and Governance Structure
- Establish Global Philosophy and Guiding Principles
- Set Retirement Plan Objectives and Design
- Create Governance Oversight Structure
- Formulate Objective Measures of Success
- Outline Implementation Considerations
- PIMCO Principles for DC Plan Success: Building and Preserving Purchasing Power
- Maximizing DC Savings: Just Do It!
- In Closing
- Questions for Plan Fiduciaries
- Chapter 2 Aligning DC Investment Design to Meet the PRICE of Retirement
- Begin with the End in Mind
- What Is a Reasonable Pay Replacement Target?
- Calculating the Income Replacement Rates
- Historic Cost of Retirement: PRICE Is a Moving Target
- A Focus on Income, Not Cost
- PRICE-Aware: Applying PRICE to Consider DC Assets and Target-Date Strategies
- Evaluating Glide Paths
- Tracking DC Account Balance Growth Relative to PRICE
- Summary: The Importance of Knowing Your PRICE
- In Closing
- Questions for Plan Fiduciaries
- Note
- Chapter 3 Plan Investment Structure
- Tiers and Blends: Investment Choices for DC Participants.
- Tier I: "Do-It-for-Me" Asset Allocation Investment Strategies
- Target-Date Strategies
- Balanced or Target-Risk Strategies
- Managed Accounts
- Tier II: "Help-Me-Do-It" Stand-Alone or "Core" Investment Options
- DC Plan Investment Choices: Farewell to Company Stock?
- Reduce Company Stock Exposure with "Sell More Tomorrow"
- Evolution of Investment Menu Design
- Active versus Passive Approaches: DC Consultants' Views
- Active versus Passive: Reduced or Heightened Litigation Risk?
- Investment Structure: Mutual Fund, Collective Investment Trust, or Separately Managed Account
- Understand Revenue Sharing: Consider Paying Administration and Other Plan Fees
- Blended Multimanager or White-Label Investment Options
- Tier III: "Do-It-Myself" Mutual-Fund-Only or Full Brokerage Window
- Considering an Outsourced Chief Investment Officer
- Considering an Outsourced Chief Investment Officer
- In Closing
- Questions for Plan Fiduciaries
- Notes
- Chapter 4 Target-Date Designand Approaches
- Target-Date Structures vary By plan Size
- Custom Target-Date Strategies
- Semicustom Target-Date
- Packaged Target-Date
- Target-Date Selection and Evaluation Criteria
- No Such Thing as Passive
- Low Cost and Low Tracking Error Does Not Equal Low Risk
- Framework for Selecting and Evaluating Target-Date Strategies: Three Active Decisions Plan Sponsors Must Make
- Active Decision #1: How Much Risk Can Plan Participants Take?
- Human Capital May Not Be Sufficient: Understanding Risk Capacity versus Risk Tolerance
- Active Decision #2: How Is the Risk Best Allocated across Investment Choices?
- Active Decision #3: Should Risk Be Actively Hedged?
- Tail-Risk Hedging Strategies
- Insurance
- Target-Date Analytics: Glide Path Analyzer (GPA) and Other Tools
- Global DC Plans: Similar Destinations, Distinctly Different Paths
- In Closing.
- Questions for Plan Fiduciaries
- Notes
- Part Two Building Robust Plans: Core Investment Offerings
- Chapter 5 Capital Preservation Strategies
- Capital Preservation: Importance
- Capital Preservation: What Is Prevalent and What Is Preferred?
- The 1 NAV : Shared by Stable Value and MMFs
- Stable Value Offers More Opportunity in a Low-Interest-Rate Environment
- Looking Forward: The Changing Role of Stable Value
- Making Low-Risk Decisions: Views from the Field
- White Labeling: A Capital Preservation Solution
- An Analytic Evaluation of Capital Preservation Solutions
- Short-Term, Low-Duration, and Low-Risk Bond Strategies
- Inclusion of Stable Value in Custom Target-Date or Other Blended Strategies
- In Closing
- Questions for Plan Fiduciaries
- Note
- Chapter 6 Fixed-Income Strategies
- What Are Bonds, and Why Are They Important for Retirement Investors?
- What Are the Different Types of Bonds in the Market?
- What Types of Bonds Should Be Offered to DC Participants?
- Capital Preservation
- Core and Core-Plus Bonds
- Investment-Grade and High-Yield Credit
- Multisector
- Foreign/Global
- Bond Investment Strategies: Passive versus Active Approaches
- Bonds Unleashed
- Analytic Evaluation: Comparing Bond Strategies
- Fixed Income within Target-Date Glide Paths
- Observations for Fixed Income Allocation within Target-Date Strategies
- In Closing
- Questions for Plan Fiduciaries
- Chapter 7 Designing Balanced DC Menus: Considering Equity Options
- What Are Equities and How Are They Presented in DC Investment Menus?
- Getting the Most out of Equities
- Consider Dividend-Paying Stocks
- Evaluating Equity Strategies
- Less Is More: Streamlining Equity Choices
- Shift to Asset-Class Menu May Improve Retirement Outcomes
- Active versus Passive-The Ongoing Debate.
- Strategic Beta: Consider Adding Fundamentally Weighted Equity Exposure
- Currency Hedging: An active Decision
- Observations for Equity Allocations within Target-Date Strategies
- In Closing
- Questions for Fiduciaries
- Note
- Chapter 8 Inflation Protection
- What Is Inflation and How Is It Measured?
- Why Inflation Protection in DC?
- History of Inflation: Inflation Spikes Underscore Need for Inflation-Hedging Assets
- Inflation Protection When Accumulating and Decumulating, and in Different Economic Environments
- Economic Environments Change Unexpectedly-and Reward or Punish Various Asset Classes
- Consultants Favor TIPS, Multi-Real-Asset Strategies, REITs, and Commodities
- How Should Plan Sponsors Address Inflationrisk In DC Portfolios?
- Implementation Challenges
- Evaluating Real Asset Strategies
- Summary Comparison of Individual and Multi-Real-Asset Blends
- Inflation-Hedging Assets in Target-Date Glide Paths
- Observations for Inflation-Hedging Assets in Target-Date Glide Paths
- In Closing
- Questions for Fiduciaries
- Chapter 9 Additional Strategies and Alternatives: Seeking Diversification and Return
- What Are Alternative Assets?
- A Wider Lens on Alternatives
- Consultant Support for Additional Strategies and Alternatives
- Back to Basics: Why Consider alternatives?
- Liquid Alternatives: Types and Selection Considerations
- Important Characteristics in Selecting Alternatives: Consultant Views
- Illiquid Alternatives: Types and Considerations
- Contrasting Liquid Alternative Strategies with Hedge Fund and Private Equity Investments
- In Closing
- Questions for Plan Fiduciaries
- Part Three Bringing It All Together: Creating Retirement Income
- Chapter 10 Retirement Income: Considering Options for Plan Sponsors and Retirees
- Advisor and Consultant Retirement Income Suggestions.
- Why Don't Retirees Leave Their Assets in DC Plans at Retirement?
- Retaining a Relationship with Your Employer Inretirement: An Innovative and Caring Plan Sponsor
- Mutual Benefits: Retaining Retiree Assets May Help Both Retirees and Plan Sponsors
- Turning DC Assets into a Lifetime Paycheck: Evaluating the DC Investment Lineup for Retiree Readiness
- Evaluating Portfolio Longevity
- Turning Defined Contribution Assets into a Lifetime Income Stream: How to Evaluate Investment Choices for Retirees
- Guarding Retiree Assets against a Sudden Market Downturn: Sequencing Risk
- Ways to Manage Market and Longevity Risk . . . without Adding In-Plan Insurance Products
- Living beyond 100: Planning for Longevity
- Managing Longevity Risk: Considerations for Buying an Annuity
- Immediate and Deferred Annuities: Why Out-of-Plan Makes Sense
- In Closing
- Questions for Plan Fiduciaries
- Notes
- Chapter 11 A Global View: The Best Ideas from around the Globe for Improving Plan Design
- DC Plans: Becoming the Dominant Global Model
- Retirement Plan Coverage and Participation
- Investment Default and Growth of Target-Date Strategies
- Retirement Income: The Global Search for Solutions
- Defined Ambition in the Netherlands
- New Solutions in Australia and Beyond: Tontines and Group Self-Annuitization
- "Getting DC Right": Lessons Learned in Chapters 1 through 10
- Chapter 1: DC Plans Today
- Chapter 2: Aligning DC Investment Design to Meet the PRICE of Retirement
- Chapter 3: Plan Investment Structure
- Chapter 4: Target Date Design and Approaches
- Chapter 5: Capital Preservation Strategies
- Chapter 6: Fixed Income Strategies
- Chapter 7: Designing Balanced DC Menus: Considering Equity Options
- Chapter 8: Inflation Protection
- Chapter 9: Additional Strategies and Alternatives: Seeking Diversification and Return.
- Chapter 10: Retirement Income: Considering Options for Plan Sponsors and Retirees.
