Investors added $96 billion to the portfolios, giving Vanguard a 34% market share.
Tag: Lifecyle funds
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.
Investments could include REITs and high-yield bonds.
70% of participants keep their money in the funds after retiring.
15% make some form of custom recommendation.
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.
Defined contribution retirement plan industry professionals certainly have heard the “TDF versus managed account” debate; increasingly, providers are seeking a middle ground.
Janus Capital Releases Fiduciary Focused Share Classes; TIAA adds Guaranteed Income Components to TDFs; Virtus Launches Municipal Bond ETF; and more.
“The rise of assets in target-date funds accounts for some of the light-trading in 401(k)s we saw in 2016,” explains Rob Austin at Aon Hewitt.
An investment with lifetime income elements can be a prudent default investment option in DC plans, even if not a QDIA, the DOL said in an information letter.
Prudential Launches New TDF Suite; Natixis Releases ESG TDFs; and Vanguard Reports Reduced Expense Ratios.
Mercer recommends areas for review that defined contribution plan advisers can go over with plan sponsors.
Lincoln Financial and BlackRock Launch Variable Annuity; Vanguard Taps RS Investments to Manage Mid-Cap Growth Fund; LGIMA Releases New Scientific Beta Funds for Institutional Investors; and more.
10 years of building profitable practices and evolving business models
17 TDF providers leverage exchange-traded funds as underlying investments
Even though TDFs have been gaining some impressive traction in the DC plan space, many participants are not using these investment vehicles in the way they were designed.