November 01, 2012
--- For the
third quarter, the Callan Target Date Index bounced back from a poor second
quarter with a return of 4.57%. ---
For the year ending September 30, 2012, returns stand at
17.28%. Across the more than 40 target-date fund (TDF) series represented in
the Index, returns ranged as high as 19.24% for the trailing 12-month period to
as low as 14.77%.
The longer the date of the fund, the higher the median
return in the third quarter: The median 2050 fund returned 5.98% for the
quarter, while the median Retirement Income vintage managed a 3.35% return.
Variation in returns was greatest for the target-date vintage just approaching
retirement —2015 Funds. Callan said this points to the differences in
ways target-date managers handle the glide path asset-allocation rolldown
during the crucial period just leading into retirement.
Rebecca Moore