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.
KBS Introduces Online Platform for Investment Trust; T. Rowe Price
Chooses Linedata to Oversee Net Asset Value; Columbia Threadneedle Presents
Target-Date Solution; and more.
“The midsized plan asset segment is representative of the DC
market segment in which the boutique DC consultant is most prevalent and
growing its marketshare,” Cerulli reports.
The 3% return on the standard equity portfolio measured
during the second quarter pushed the decade-old DC plan investing index to a
record-breaking year.
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.
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.
However, according to the Alight Solutions 401(k) Index, formerly the Aon Hewitt 401(k) Index, trading activity for the months was the lowest for the year.
New research from Northern Trust finds its largest plan sponsor clients have broadly embraced collective investment trusts, and more than half now use custom TDFs.