
Top DC Trends and Developments
Overview
Our Defined Contribution in Review is designed to help CEOs, CFOs, treasurers, human resource and benefits professionals and investment committees stay abreast of recent events that could have an impact on plans or plan participants. Inside you will find quarterly highlights, timely insights about the retirement readiness of plan participants, a summary of new and pending legislation, news from the DOL and other regulatory bodies, updates on ERISA cases and a brief synopsis of global retirement issues.
Key topics from this quarter’s edition
- Updating auto-escalation and employer contribution formulas to meet changing circumstances and needs
- Reviewing target-date fund glide paths and adding managed account options
- Interpreting the three bills of SECURE Act 2.0 and the impact on workplace retirement programs
- Understanding new proposals, amendments and deadlines from the DOL
- Evaluating plan investments and service providers’ cybersecurity practices
Please consider the charges, risks, expenses and investment objectives carefully before investing. Please see a prospectus or, if available, a summary prospectus containing this and other information. Read it carefully before you invest or send money.
Past performance is no guarantee of future results.
Investing involves risk, including the possible loss of principal and fluctuation of value.
There is no assurance the stated objective(s) will be met.
Foreign securities are subject to additional risks including currency fluctuations, political and economic uncertainty, increased volatility, lower liquidity and differing financial and information reporting standards, all of which are magnified in emerging markets.
Fixed income securities are subject to interest rate, inflation, credit and default risk. The bond market is volatile. As interest rates rise, bond prices usually fall, and vice versa. The return of principal is not guaranteed, and prices may decline if an issuer fails to make timely payments or its credit strength weakens.
High-yield or "junk" bonds involve a greater risk of default and price volatility and can experience sudden and sharp price swings.
Derivatives can be more volatile and sensitive to economic or market changes than other investments, which could result in losses exceeding the original investment and magnified by leverage.
Smaller capitalization securities may be less stable and more susceptible to adverse developments, and may be more volatile and less liquid than larger capitalization securities.
Growth stocks are subject to increased risk of loss and price volatility and may not realize their perceived growth potential.
Environmental, social, and governance (“ESG”) factors are integrated into the investment process by focusing on those ESG factors considered most likely to have a material impact on the financial performance of the issuers. ESG factors are one of many considerations in the investment decision-making process and may not be determinative in deciding to include or exclude an investment.
Increased portfolio turnover may result in higher expenses and potentially higher net taxable gains or losses.
The Morningstar Rating™ for funds, or "star rating", is calculated for funds with at least a three-year history. Exchange-traded funds and open-ended mutual funds are considered a single population for comparative purposes. It is calculated based on a Morningstar Risk-Adjusted Return measure that accounts for variation in a fund's monthly excess performance, placing more emphasis on downward variations and rewarding consistent performance. The Morningstar Rating does not include any adjustment for sales loads. The top 10% of funds in each category receive 5 stars, the next 22.5% receive 4 stars, the next 35% receive 3 stars, the next 22.5% receive 2 stars, and the bottom 10% receive 1 star. The Overall Morningstar Rating for a fund is derived from a weighted average of the performance figures associated with its three-, five-, and 10-year (if applicable) Morningstar Rating metrics, and may not indicate positive performance. Ratings may vary by share class.
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