Insights / Blogs

Insights / Blogs

July 31, 2015

This Week in Review: Markets Gain Ground in Quiet Week

For the week ended 31 July 2015
  • US GDP grows at 2.3% pace in Q2
  • Fed remains tightlipped on rate plans
  • Rising US home prices weigh on affordability
  • Teva–Allergan is latest health care merger
  • Profits tumble at large oil firms

Financial markets took a break from recent volatility, and global stocks generally climbed back after a string of daily losses ended Monday. Little significant economic news was reported globally, while US data releases were mixed.

July 29, 2015

How Equities Can Drive Better Growth for DC Plans

By Ravi Venkataraman, Head of Global Consultant Relations and Global Defined Contribution

As the driver of growth for so many retirement investors, equities are the most widely held asset class in DC plans — representing up to 75.5% for participants in their 20s and up to 54.5% for participants in their 60s. [1] Of particular note, the average participant invests 43.5% of his or her assets directly in equity funds. That number jumps up to 65.5% when you consider the equity component of target date funds.  So, other than the amount DC plan participants save, a participant's equity exposure can have the biggest impact on retirement outcomes.

July 16, 2015

The Power of Two: Combining Fundamental and Quantitative for DC

By Ravi Venkataraman, Head of Global Consultant Relations and Global Defined Contribution

More than one set of tools in your toolkit gives you the power to solve more than one set of problems. So, it stands to reason that active managers who combine more than one investment approach into one strategy would be able to more effectively navigate a variety of market conditions for DC plans. History has shown that no single style of investing works in every market environment. Combine two different investment approaches such as quantitative and fundamental, however, and there is much greater opportunity to tap performance leadership as market conditions change. 

July 09, 2015

China Acts to Halt Stock Slide

The dramatic reversal in Chinese equity markets suggests that this year’s run-up was a liquidity-driven bubble fueled by active trading in retail margin accounts, without underlying economic fundamentals to support it.

July 02, 2015

No Panacea for Puerto Rico

Holders of Puerto Rican bonds could eventually be forced to accept deferred payments and debt restructuring, but the situation could take years to resolve.

Capturing headlines and calling attention to Puerto Rico’s serious debt woes, Governor Alejandro GarcĂ­a Padilla stated on 28 June that the commonwealth’s $72 billion in outstanding debt obligations is not payable.