`LOUSY INVESTORS': DC participants, in hindsight, pick median portfolios over their own; SwedishAmerican Health, UCLA employees studied.(SwedishAmerican Health System)(Brief Article) - Pensions & Investments

Defined contribution plan investors are lousy investors, and what's more, they know it, according to a recent study of participants in 401(k) and 403(b) plans.

The study covered participants of SwedishAmerican Health System's $86 million defined contribution plans and the University of California at Los Angeles' deferred compensation plan.

Most participants in those plans - even those who previously rejected the opportunity to have experts devise their portfolios - found the median investment portfolio more attractive than the one they chose themselves.

The main problem, the study found, is that defined contribution plan participants do not know what their risk preferences are, said Shlomo Benartzi, professor at The Anderson School, UCLA, who ran the study with Richard H. Thaler, professor of economics at the University of Chicago, Graduate School of Business.

Automatic portfolio preferred

At SwedishAmerican, Rockford, Ill., the majority of participants who opted out of the plan's automatic professional management feature preferred the portfolio they would have gotten to the one they crafted. (Indeed, Tom Koelbl, vice president of human resources at SwedishAmerican, said participation in the automatic professionally managed feature has grown to 86% from around 80% during the roughly 18 months the feature has been offered.)

UCLA's 22,000 participants did not have a similar option in their 403(b) plan. However when faced with the predicted outcomes of investment portfolios they had selected and a median portfolio, most of the plan participants studied preferred the median portfolio selected by their peers.

``Finding the right level of risk that fits us is a very tough job,'' Mr. Benartzi said. ``People are not sure what their preferences are.'' When you ask people whether they prefer milk chocolate or dark chocolate, they can choose easily because they most likely have tasted both many times and know what they like best, Mr. Benartzi explained. This is not the case with investment risk tolerance, he said.

``Not many participants have experience with the exact tradeoff between risk and return,'' he said. ``Those preferences might not be well defined.''

The study concluded that whatever benefits there are in allowing plan participants to chose their own investment portfolios within defined contribution plans, they are likely to reach the maximum benefit with a small number of investment options. Moreover, plan sponsors should use ``extreme care'' in selecting investment options, Mr. Benartzi said.

``When there is an array of balanced funds with a range of risk levels, some investors will be attracted to the middle one, simply because of its relative position,'' Messrs. Benartzi and Thaler noted. ``This result implies that plan sponsors, when choosing the array of funds, may be implicitly (and unintentionally) `suggesting' particular funds or asset allocations.''

Demographic factors

SwedishAmerican's 401(k) and 403(b) plans have identical investment options. Under the professional money management program, portfolios are selected by Chicago-based ProManage Inc., formerly Strategic Financial Concepts Inc., which is merging with I C M Asset Management, Spokane, Wash. ProManage's allocations are based on demographic factors such as age, but not on individual risk preferences.

ProManage typically uses seven of the plans' 11 investment options, Mr. Koelbl said: Robertson Stephens Emerging Markets and Emerging Growth funds; T. Rowe Price's Dividend Growth fund; Equity Index 500 and International Stock funds; Deutsche Preservation Plus fund; and Artisan Small-Cap Value fund. Plan participants who opt out of ProManage also can invest in Dresdner RCM Large-Cap Growth fund, T. Rowe Price's Spectrum Income and Total Equity Market index funds, and a mutual fund window. T. Rowe Price is the plan's semi-bundled provider, Mr. Koelbl added.

SwedishAmerican chose ProManage as the plans' default because ``people wanted choice, but they did not want to take the time and energy to make the right choices,'' Mr. Koelbl said.

Messrs. Benartzi and Thaler studied those participants who had opted out of the ProManage program at SwedishAmerican, choosing to manage their own portfolios. Those participants were given three unmarked portfolios: a ProManage portfolio; the average portfolio of SwedishAmerican participants; and the participant's own asset mix.

After seeing income projections based on each of the three portfolios, participants preferred the average portfolio more than the other two. Some 44% of the participants preferred the average portfolio, while 22% were indifferent and 34% preferred their own portfolios. Sixty-one percent of participants preferred the ProManage portfolios, 19% were indifferent and only 20% preferred their own portfolios. In the study, participants were asked not to choose among the three, but rather to pick separately between their portfolio and the average; their portfolio vs. the ProManage recommendation; and then between the average portfolio and the ProManage allocation. (Financial Engines Inc., the Palo Alto, Calif.-based investment advisory firm, did the income projections used in the study.)

UCLA TO OFFER FREE HEALTH SCREENINGS, EXAMS TO COMMUNITY AT BACK-TO-SCHOOL HEALTH FAIR. - States News Service

LOS ANGELES, CA -- The following information was released by UCLA Health System:

Contact: Elaine Schmidt

WHAT:

Vision and oral exams; screenings for diabetes and anemia; blood pressure and cholesterol checks; and mammograms will be offered free to the public at a back-to-school health fair sponsored by the UCLA/Charles R. Drew University of Medicine and Science chapter of the Student National Medical Association (SNMA). Free school supplies will also be distributed.

The SNMA is the nation's oldest and largest independent, student-run organization addressing the needs and concerns of medical students of color. The local chapter has provided screenings and health education to more than 300 people over the past four years.

WHO:

Vision screenings will be conducted by the UCLA Mobile Eye Clinic, an outreach program of the Jules Stein Eye Institute at UCLA.

Students and faculty from the David Geffen School of Medicine at UCLA will check individuals' blood pressure and cholesterol and screen for diabetes and anemia.

USC School of Dentistry students will perform the oral exams, and staff from the Forum Medical Group will administer mammograms.

WHEN:

9 a.m.-3 p.m., Saturday, Sept. 10

WHERE:

Macedonia Baptist Church, 1751 E. 114th St., South Los Angeles (map)

CONTACT:

UCLA NEWS/WEEK: CALIFORNIANS' HEALTH SURVEY. - States News Service

LOS ANGELES, CA -- The following information was released by UCLA Health System:

In the webcast, the director of the UCLA Center for Health Policy Research discusses findings of the newest California Health Interview Survey, the largest survey of Californians and their health.

'We found a very strong relationship between the density of fast-food outlets in a given community and the level of obesity,' said E. Richard Brown, pointing to one key finding. The survey also provided the data to estimate that two-thirds of the state's 7 million uninsured will likely be eligible in 2014 for new medical coverage options under healthcare reform.

Also in this UCLA News|Week, scientists stumble upon a chemical that appears to induce hair growth in mice, possibly a key to re-growth of human hair; children with ADHD are much more likely to develop substance abuse problems later in life; astronomers discover a new cluster of stars in the Andromeda galaxy; and UCLA engineers make advances in nanotechnology using nanoribbons.

UCLA News|Week is produced on Wednesday most weeks during the year. You can subscribe to the RSS feed, sign up for e-mail alerts and view past programs at UCLA Newsroom.

CYCLING MAY NEGATIVELY AFFECT MALE REPRODUCTIVE HEALTH, UCLA STUDY FINDS. - States News Service

LOS ANGELES, CA -- The following information was released by UCLA Health System:

A study by researchers at the UCLA School of Nursing has found that serious male cyclists may experience hormonal imbalances that could affect their reproductive health.

The study, 'Reproductive Hormones and Interleukin-6 in Serious Leisure Male Athletes,' was recently published in the European Journal of Applied Physiology.

To date, an extensive amount of research has been done documenting the positive effects of long-term exercise on health. Yet while moderate exercise can lead to enhanced cardiovascular and metabolic function and reduced body fat, studies have shown that ultra-endurance levels of exercise can also adversely affect the neuroendocrine system and reproductive health.

Most research studying the effects of exercise on reproductive health has focused on female athletes; there have been few studies that have looked at male endurance-trained athletes.

The UCLA study explored associations between exercise intensity and circulating levels of reproductive hormones in both serious leisure athletes and recreational athletes. The researchers divided 107 healthy male study subjects (ages 18 to 60) into three groups: 16 triathletes, 46 cyclists and 45 recreational athletes.

Participants completed the International Physical Assessment Questionnaire to provide an objective estimate of time they spent participating in different levels of physical activity and inactivity during the previous week. Blood samples were then collected from each participant to measure total testosterone, estradiol, cortisol, interleukin-6 and other hormones.

'Plasma estradiol and testosterone levels were significantly elevated in serious leisure male cyclists, a finding not previously reported in any type of male athlete,' said Leah FitzGerald, an assistant professor at the UCLA School of Nursing and principal investigator and senior author of the study.

Plasma estradiol concentrations were more than two times higher in the cyclists than in the triathletes and recreational athletes, and total testosterone levels were about 50 percent higher in cyclists than in the recreational athletes.

Estradiol is a form of estrogen and, in males, is produced as an active metabolic product of testosterone. Possible conditions associated with elevated estrogen in males include gynecomastia, a condition that may result in the loss of pubic hair and enlarged breast tissue.

'Although preliminary, these findings warrant further investigation to determine if specific types of exercise may be associated with altered sex-hormone levels in men that could affect general health and reproductive well-being,' FitzGerald said.

One of the interesting findings of the study related to the use of chamois cream. Some cyclists apply chamois cream to their perineum area to help prevent chaffing and bacterial infections related to bicycle saddle sores. However, many commercial creams contain a variety of ingredients, including lubricants, polymers and oils, and some also contain parabens, which are anti-microbial preservatives and weak estrogen agonists.

In the study, 48.5 percent of cyclists u compared with 10 percent of triathletes u reported using a paraben-containing chamois cream. The study found an association between an increase in estrogen levels and increasing years of chamois cream use, particularly for male cyclists using the cream for more than four years. At this time, however, no direct cause and effect has been found, the researchers said.

The study was funded by the UCLA School of Nursing, the UCLA General Clinical Research Center and the Kaiser Foundation. Other authors of the study included Wendie A. Robbins, also of the UCLA School of Nursing, and James S. Kesner, of the division of applied research and technology at the Centers for Disease Control and Prevention's National Institute for Occupational Safety and Health.

(The findings and conclusions in the report are those of the authors and do not necessarily represent the views of the National Institute for Occupational Safety and Health.)

ANNA DEAVERE SMITH TO PERFORM ONE-WOMAN SHOW AT UCLA SCHOOL OF PUBLIC HEALTH EVENT.(Theater review) - States News Service

LOS ANGELES, CA -- The following information was released by UCLA Health System:

WHAT:

Playwright, actor and professor Anna Deavere Smith, hailed by Newsweek as 'the most exciting individual in American theater,' will perform her singular brand of 'documentary theater' at the 36th Annual Lester Breslow Distinguished Lecture and Dinner, hosted by the UCLA School of Public Health.

Smith will present her most recent one-woman show, 'Let Me Down Easy,' which explores life, death, and the resilience and vulnerability of the human body and which opened to rave reviews at New York City's Second Stage Theatre last fall. Her unique blend of theatrical art, social commentary and journalism earned her a prestigious MacArthur 'genius' fellowship in 1996.

WHEN:

Thursday, March 18

* Reception: 6 p.m.

* Dinner and program: 7 p.m.

WHERE:

The Beverly Hilton Hotel, 9876 Wilshire Blvd., Beverly Hills, Calif. 90210

BACKGROUND:

The annual Lester Breslow Distinguished Lecture and Dinner brings together prominent health care and corporate executives, community leaders, and political dignitaries, along with School of Public Health faculty and alumni. The UCLA School of Public Health is recognized as one of the top public health programs in the country, and funds raised during this event support some of the most important and innovative health education and research efforts in the U.S. and around the world.

COST:

Individual tickets are $150 and can be purchased online. (Sponsorship opportunities are available.) For more information, call 310-825-6464.

MEDIA CONTACT:

AASA, SCHOLASTIC, UCLA CENTER FOR MENTAL HEALTH IN SCHOOLS ANNOUNCE JOINT EFFORT TO TRANSFORM EDUCATION. - States News Service

ARLINGTON, Va. -- The following information was released by the American Association of School Administrators:

The American Association of School Administrators, Scholastic and the UCLA Center for Mental Health in Schools announced a new collaboration designed to help education leaders transform education systems and enhance school improvement efforts. In Savannah, Ga., on Dec. 3, the three organizations will launch the Learning Supports Collaborative, an initiative that works with school and district leaders to implement comprehensive systems of learning supports. Such systems are designed to address factors affecting children's academic achievement and ensure that all students have the opportunity to succeed at school.

'AASA is maintaining its focus on supporting the total child, from physical and mental health to the development of fundamental, lifelong learning skills,' says AASA Executive Director Dan Domenech. 'The collaboration among AASA, Scholastic and UCLA is vital to our effort because only when children have support for all their needs will schools have a real chance of helping every student master required education concepts and skills.'

As part of the collaborative, AASA, Scholastic, the global children's publishing, education and media company, and UCLA created a range of learning opportunities for education leaders around planning and implementing learning support systems. In the coming months, AASA and Scholastic will host a Learning Supports webinar series at no cost for AASA members and thought-leader sessions at AASA's National Conference in Phoenix (Feb. 11-14, 2010).

UCLA Center for Mental Health in Schools co-directors Howard Adelman, Ph.D., and Linda Taylor, Ph.D., educators and researchers who have worked with state departments of education, districts and schools, will be guiding the collaborative using the proven theories and practices they have developed over the past 30 years. Scholastic is providing a $50,000 grant to AASA to enable school district teams to receive intensive professional development and support from the UCLA Center.

Adelman and Taylor said their research and practice in the school improvement arena indicate that schools must begin to redress the fragmentation and marginalization of the programs put in place to address students' learning, behavior and emotional problems. 'If school improvement efforts do not place a high priority on developing a system to address factors that interfere with learning and that reengages disconnected students, we will continue to see the widespread academic and social problems plaguing so many schools and communities,' they said.

'Scholastic is continuing its longstanding history of collaborating with school leaders to make sure that all children have access to high quality education,' notes Karen Proctor, Scholastic's vice president of community affairs. 'What is innovative about the Learning Supports Collaborative, and the work of , is that it is a bold approach to school improvement that requires fundamentally restructuring school and community resources in ways that truly enable all students to benefit from learning.'

Four AASA districts were selected via an application process to be Learning Supports Collaborative Lead Districts. The districts are Jefferson County Public Schools, KY, Gainesville City Schools, GA, Indian River County School District, FL, and Sabine Parish Schools District, LA and are led by AASA members Sheldon Berman, Merrianne Dyer, Henry LaCava and Dorman Jackson, respectively. During the next several months, the superintendent-led, district teams will work with the UCLA Center, Scholastic and AASA to:

Build understanding about comprehensive systems of learning supports and how such systems transform public education;

Create policy and practice framework documents that can be shared among critical stakeholder groups; and

Work to design and implement learning support systems for their schools and districts.

The first meeting of the Learning Supports Collaborative Lead Districts will take place Dec. 3-4, 2009, at the Westin Harbor Hotel in Savannah, Ga.

About AASA

The American Association of School Administrators, founded in 1865, is the professional organization for more than 13,000 educational leaders in the United States and throughout the world. AASA's mission is to support and develop effective school system leaders who are dedicated to the highest quality public education for all children. For more information, visit www.aasa.org.

About Scholastic

Scholastic Corporation (NASDAQ: SCHL) is the world's largest publisher and distributor of children's books and a leader in educational technology and children's media. Scholastic creates quality educational and entertaining materials and products for use in school and at home, including children's books, magazines, technology-based products, teacher materials, television programming, film, videos and toys. The Company distributes its products and services through a variety of channels, including proprietary school-based book clubs and school-based book fairs, retail stores, schools, libraries, television networks and the Company's Internet Site, www.scholastic.com.

About the UCLA Center for Mental Health in Schools

DRUG-RESISTANT INFECTIONS: A NEW EPIDEMIC, AND WHAT YOU CAN DO TO HELP UCLA WORKSHOP TO EDUCATE HEALTH CARE WORKERS ON PROPER USE OF ANTIBIOTICS. - States News Service

LOS ANGELES -- The following information was released by the University of California Los Angeles:

By Rachel Champeau

Are you aware that colds, flu, most sore throats and bronchitis are caused by viruses? Did you know that antibiotics do not help fight viruses and that using them for viral infections only decreases their effectiveness overall?

Millions of Americans take antibiotics each year to fight illness, trusting they'll work. However, the pathogens are fighting back. Within the past couple of years, new drug-resistant patterns have emerged, and resistance to common antibiotics has increased.

'We can help this serious emerging problem by educating patients and health care workers about the proper use of antibiotics,' said Dr. Daniel Uslan, assistant clinical professor of infectious diseases and director of the UCLA Antimicrobial Stewardship Program, which promotes the appropriate use of antibiotics for hospitals in the UCLA Health System.

In partnership with the Centers for Disease Control's Get Smart about Antibiotics Week, taking place Nov. 14-20, Uslan and his team will offer a continuing medical education program for health care providers and staff. Topics will include the prompt diagnosis and treatment of infections, the appropriate prescribing of antibiotics, and following infection-prevention techniques to prevent the spread of drug-resistant infections in hospitals.

According to Uslan, the public can also play a role in reducing the threat of antibiotic resistance, and he suggests the following:

1) If you are seeing your doctor for a cold or flu, discuss the use of antibiotics with your physician. If it's a viral infection, antibiotics aren't effective and will only add to the problem of antibiotic resistance. Antibiotics are appropriately prescribed for only bacterial infections.

2) If your doctor determines that you do not have a bacterial infection, do not pressure your doctor to prescribe antibiotics. Instead, ask about methods you can use to reduce your symptoms.

3) Take antibiotics exactly as prescribed by your physician, even if you feel better.

4) Do not save leftover antibiotics for the next time you become sick.

5) Do not take antibiotics prescribed for someone else.

6) Do not assume that yellow or green mucus means that you need antibiotics. It is normal for mucus to get thick and change color during a viral cold.

7) The vast majority of sore throats do not require antibiotics. Only 5 percent to 15 percent of adult cases of sore throat are due to 'strep.' If your doctor suspects strep throat, ask whether a throat swab is appropriate.

The following websites can help you stay informed:

UCLA Antimicrobial Stewardship Program

www.asp.mednet.ucla.edu/pages

Centers for Disease Control

www.cdc.gov/getsmart/antibiotic-use/index.html