A new Corporate Insight report offers a brief history of the development of financial services technology security measures introduced since 1996—delivering for retirement plan fiduciaries important contextual information about today’s evolving best practices.
The drivers behind a target-date manager offering open
architecture most commonly include the belief that participants benefit from
asset manager diversification and the need to outsource allocations to access best-in-class
strategies, Cerulli reports.
More investment providers are now using ETFs within glide-path-based portfolios, but the business development leader at Stadion says his firm has long embraced the approach, as exemplified by the new TargetFit product launch.
The transition period, from five years before retirement to
five years after, is the most critical phase of lifecycle investing—and
potentially the most difficult to manage with a standard TDF glide path.
The rigors of the fiduciary duty can lead plan sponsors to overreact
to fund manager changes in the interest of maintaining an atmosphere of proactivity
with respect to the investment policy statement.
Experts with Charles Schwab warn that a decade of generally stable
credit markets has some investors feeling a false sense of security about “stretching
for yield” within near retirees' target-date funds.