Products July 22, 2014

Nuveen Adopts RiskFirst Technology to Enhance LDI Services

July 22, 2014 (PLANSPONSOR.com) – Nuveen Asset Management will use RiskFirst’s web-based analytics platform, PFaroe, to help craft customized liability-driven investment (LDI) strategies for institutional clients, particularly defined benefit pension plans.
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Nuveen anticipates as much as $1 trillion will transfer from equities to long-duration bonds over the next five years as pension plans and individual investors alike look to implement the principles of LDI, which involves better matching assets to projected liabilities (see “Implementing a Liability-Driven Investing Strategy”). Nuveen says the PFaroe product will be used by the firm’s recently formed Institutional Solutions Group as it builds and delivers LDI strategies for pension plans, public funds, foundations and endowments, insurance companies and other institutional investors.

“Over the next five years, we expect a $1 trillion move from equities to long-duration bonds, as corporate pension plans implement LDI strategies in a much bigger way than ever before,” says David Wilson, managing director and head of the Institutional Solutions Group at Nuveen Asset Management. “As rates rise and funded ratios improve, our team expects a considerable number of LDI programs to accelerate or start.”

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The UK-based RiskFirst company, formerly known as PensionFirst, provides risk analytics software for various applications in multi-asset portfolio management and compliance settings (see “PensionFirst Broadens Focus to Become RiskFirst”). The firm says it is leveraging its strategic relationship with Winklevoss Technologies LLC, to expand operations in the United States. Its core product, PFaroe, is a real-time, web-based valuation, analytics and reporting platform designed to help institutional investors gain deeper insights into their risk exposure across multi-asset portfolios.

“As we built our technology platform, we found that there were good analytics systems on the asset side, and good pension liability systems, but there were very few that pulled both sides of the equation together on one platform,” Wilson adds. “[It’s] something we deemed essential to efficiently design LDI strategies on behalf of clients of all sizes. PFaroe does this, while also offering insight into the key risks that pension plans should be concerned with, all displayed in a user-friendly fashion.”

More information is available at the Nuveen Investments website and at www.riskfirst.com.

Benefits July 22, 2014

Work Not Just About the Paycheck

July 22, 2014 (PLANSPONSOR.com) – Just over half of Americans (51%) would continue to work, even if they did not need to financially.
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A new survey from CareerBuilder finds that not all people dream of hitting it big and leaving their offices behind. In fact, if they won the lottery, 30% of respondents to a recent CareerBuilder poll say they would even keep their current job. As to why they would continue working, even though they did not have to, the respondents explain:

  • They would be bored if they didn’t work (77%);
  • Work gives them a sense of purpose and accomplishment (76%);
  • They want financial security aside from the financial winnings (42%); or
  • They would miss their coworkers (23%).

On the other hand, 49% of respondents say they would indeed leave the work force if they came into a large sum of money. And many of them would strive to be cooperative with their employers as they exited the work force. Forty-eight percent of those surveyed would be willing to give more than two weeks notice if their employee needed it. Another 31% say they would be willing to give two weeks notice prior to their departure.

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Other exit plans among respondents include:

  • Resigning that day without giving notice (13%);
  • Tell off their boss and air all grievances (3%); and
  • Not show up to work the next morning without formally quitting (2%).

The survey also finds that only 15% of Americans say they are currently working in their dream job, and another 36% say that while they are not quite there yet, they believe they will be someday.

A similar survey, conducted by Gallup in December 2013, found that two-thirds of employees would continue working if they won the lottery and that this mindset is specific to employees who are involved in and enthusiastic about their work and workplace (see “Engaged Employees Would Work After Lottery Win”).

The national survey was conducted online by Harris Poll, on behalf of CareerBuilder, from May 13 to June 6. It included a representative sample of 3,372 workers across industries and company sizes. CareerBuilder is a provider of human capital solutions.

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