Tag: Lifecyle funds

However, they still held the largest percentage of total balances in October and received the largest percentage of contributions.

This is a 2.25% increase from the average balance in the second quarter of the year.

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 firm looks at a plan’s demographics and creates a glidepath that both controls for and seeks out risk.

Participants age 50 and older need more personalized advice, advisers say.

“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. 

Goldman Sachs Launches new ETF; Betterment Rolls Out Smart Beta Portfolio; and GRP Partners With Envestnet to Launch CIT Suite.

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. 

Twenty five of T. Rowe Price’s mutual funds have been selected by Charles Schwab.

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.

DC plan sponsor clients can leverage both TDFs and managed accounts together to maximize outcomes.

More DC plan sponsors are selecting non-proprietary TDFs and CIT TDFs, research finds.

A trio of experts from Manning and Napier examine the “new era of DC plan menu design,” arguing encouraging developments are on the horizon.

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.

In a world of heightened fee pressure and low long-term returns, asset managers are redesigning widely used TDFs and some are turning to strategic beta. 

The growth of 4.67% is the highest quarterly bump for the index since the end of 2013.

The use of automatic features has also benefited participants, Vanguard says.