Benefits June 18, 2013

Canadian Boomers Concerned About Health Care in Retirement

June 18, 2013 (PLANSPONSOR.com) – As they approach retirement, Canada's younger Boomers (ages 50 to 59) are focusing on health concerns more than finances.
Reported by

Seventy percent rank changes to their physical health highest on the list of top challenges they expect to face as retirees, according to the 2013 RBC Retirement Myths & Realities Poll. Finances ranked a distant second, with 57% expecting changes to income to be a challenge during retirement. Men (73%) are more concerned about changes to their health than women (66%).  

The RBC poll, now in its fourth year, continues to underline how expectations do not always match realities. For example, while four in 10 younger Boomers do not expect health or disability constraints to ever change their lifestyle or independence, nearly three in 10 (27%) report a significant health issue or decline has affected them or someone in their family within the past year.  

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At the same time, 42% of younger Boomers responded that being a caregiver to another adult was a support role they had already performed, were doing now or expected to do in future.  

The survey was conducted via online interviews by Ipsos Reid from February 27 to March 12, using a national sample of 2,159 adults ages 50 and older with household assets of at least $100,000, from Ipsos’ Canadian online panel.
Administration June 18, 2013

Investors Add $38.6 Billion to Mutual Funds

June 18, 2013 (PLANSPONSOR.com) – Investors added another $38.6 billion to long-term mutual funds in May, according to Morningstar, Inc.
Reported by

The report, “Morningstar Direct U.S. Open-End Asset Flows Update,” shows inflows were led by taxable-bond funds with $21.1 billion.

Despite investors’ continued preference for fixed income, the composition of inflows to the asset class has shifted. Weak flows into intermediate-term bond funds mark a clear shift in investor behavior from 2012, when the category dominated inflows. Investors have sought out less interest rate-sensitive bond sectors recently, like nontraditional bond and bank-loan funds, Morningstar said.

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U.S. equity funds saw outflows of $659 million in May, driven by redemptions of $1.9 billion from large-growth funds. However, with inflows of $8.5 billion, international-equity funds remained in favor, led by diversified emerging-markets funds.

Municipal-bond funds saw net redemptions for the third consecutive month while money market funds collected new assets of $27.2 billion, their first monthly inflow of 2013.

Vanguard led all providers in May. Franklin Templeton also had a strong month, driven by inflows into Templeton Global Bond. While PIMCO remained in second place in terms of fund family flows, its $2.5 billion intake in May was its weakest showing for the year to date.

The report can be found at http://www.global.morningstar.com/mayflows13. A video recapping March’s U.S. asset flow trends can be found at http://bit.ly/may2013flows. More information about Morningstar Asset Flows can be found at http://global.morningstar.com/assetflows.

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