Quantcast
The MFWire
Manage Email Alerts | Sponsorships | About MFWire | Who We Are

Subscribe to MFWire.com's News Alerts [click]

Rating:Asset Allocation Doesn't Matter? Not Rated 0.0 Email Routing List Email & Route  Print Print
Wednesday, September 05, 2012

Asset Allocation Doesn't Matter?

News summary by MFWire's editors

Deferral rates affect defined contribution plan portfolios more than fund selection, asset allocation or rebalancing, at least claims a new white paper from Putnam Investments [profile].

AdvisorOne details the methodology behind Missing the Forest for the Trees today. For example, to test out the effect of fund strategies, Putnam used four different scenarios, with strategies including even the crystal ball. Returns across all four different scenarios — realistic or not — were fairly similar across the board.

Without a doubt, no scenario caused as great an impact on portfolios than higher deferral rates. Increased deferral rates of 3 percent to 4 percent, and 6 percent to 8 percent caused final balances to increase from $136,000 to $181,000, and $272,000 and $334,000, respectively. 

Edited by: Irene Park


Stay ahead of the news ... Sign up for our email alerts now
CLICK HERE

0.0
 Do You Recommend This Story?



GO TO: MFWire
Return to Top
 News Archives
2018: Q4Q3Q2Q1
2017: Q4Q3Q2Q1
2016: Q4Q3Q2Q1
2015: Q4Q3Q2Q1
2014: Q4Q3Q2Q1
2013: Q4Q3Q2Q1
2012: Q4Q3Q2Q1
2011: Q4Q3Q2Q1
2010: Q4Q3Q2Q1
2009: Q4Q3Q2Q1
2008: Q4Q3Q2Q1
2007: Q4Q3Q2Q1
2006: Q4Q3Q2Q1
2005: Q4Q3Q2Q1
2004: Q4Q3Q2Q1
2003: Q4Q3Q2Q1
2002: Q4Q3Q2Q1
 Subscribe via RSS:
Raw XML
Add to My Yahoo!
follow us in feedly




©All rights reserved to InvestmentWires, Inc. 1997-2018
40 Wall Street | 28th Floor | New York, NY 10005 | P: 212-331-8968 | F: 212-331-8998
Privacy Policy :: Terms of Use