Morningstar found for allocation funds, the do-nothing portfolio, such as TDFs, and investor returns were nearly identical and both were ahead of the average fund.
Tag: Lifecyle funds
Nationwide Launches All Cap Growth Fund; MFS Adds R6 Shares to 20 More Mutual Funds; Fidelity Releases Municipal Income Fund 2025; and more.
A federal judge called comparisons to other funds insufficient, and noted that funneling participant investments into a default fund is normal.
J.P. Morgan’s head of target-date strategies urges plan advisers to reexamine the “critical role of fixed-income assets in target-date funds,” highlighting ways they can help clients generate stronger risk-adjusted returns and manage volatility.
With TDFs growing rapidly in the DC market, providers are exploring new ways to stand out from the crowd.
The firm’s target-date mutual fund lineup will now have access to institutional-quality direct real estate investments.
Consultants interviewed by PIMCO weighed in on which target-date strategies are best for which plans, which active strategies are best for which investments, and more.
There are strategies to help retirees create a lifetime income stream that can reverse this trend.
An increase in the number of TDF providers has been a positive development for investors, as it has led to lower fees and more product choices, according to Mercer research.
The lawsuit claimed the defendants breached their fiduciary duties by investing a significant portion of the plans’ assets in risky and high-cost hedge fund and private equity investments through custom-built target-date funds.
A new study finds Millennials are almost unanimous in their support of TDFs and auto-escalation features; moreover, they want their employers to help them save for retirement.
Many folks under 30 are “do-it-for-me” type investors.
This was followed by $835 billion in hybrid funds, which include target-date funds, ICI found.
Investors added $96 billion to the portfolios, giving Vanguard a 34% market share.
Pairing this with higher deferral rates can result in balances as much as 30% higher, the investment firm says.
USAA Launches New R6 Share Class Funds; First Eagle Launches New Mutual Fund Share Classes; Natixis Rolls out ESG TDF; and more.
HealthSavingsAdministrators Launches HSA Featuring Franklin Templeton Funds; Natixis ESG TDF on the Horizon; Wilshire Associates Rolls Out Equity Hedge Fund Index; and more.
Six months after a re-enrollment, 94% of participants and 74% of plan assets were in TDFs, while one year later, 92% of participants and 81% of plan assets were in TDFs, a case study by Vanguard showed.
Charles Schwab Lowers Trade Commissions and Index Fund Fees; Symons Capital Releases Small Cap Equity Mutual Fund; Pantheon Targets DC Plans for Private Equity Strategies; and more.
Like individual investors, TDF portfolio managers feel pressure to react to short-term trends and speculative market headlines; as with individuals, performance depends on efficient portfolios and a principled approach.