Tag: target-date funds

Participants who mix target-date funds (TDFs) with other investments appear to be more sophisticated, but "it can diminish (or eliminate) the target-date fund’s potential benefit,” says David Blanchett, head of Retirement Research at Morningstar Investment Management LLC.

The lawsuit accuses the retirement plan committee of CHS/Community Health Systems, Inc. Retirement Savings Plan and Principal defendants of imprudent management of the plan and its investments.

A litigation firm has listed what it is investigating for potential lawsuits over target-date funds (TDFs) in retirement plans.

Plan advisers can help 403(b) plan sponsors looking for downside protection, active strategies and target-date funds (TDFs) that can be used as a decumulation vehicle in retirement.

Despite a market “teeming with better-performing alternatives,” the plaintiffs say, Walgreen selected the Northern Trust Funds, which already had a history of poor performance.

The program from GoalPath offers target-date funds that consider not just a participant’s age but other data, and it emphasizes retirement income over account balances.

Plan sponsors that fully automate their plans are more likely than others to believe their workers are on the path towards a financially secure retirement, J.P. Morgan found.

The study finds that participants who join plans with a TDF default contribute to fewer funds and are significantly more likely to choose only TDFs for their allocations.

While only 0.21% of balances were exchanged in May, it was the highest monthly activity so far this year, according to Alight Solutions.

With its fee reduction, 21 of the 22 Fidelity Freedom Index Funds will have total net expenses lower than comparable Vanguard index target-date funds, Fidelity says.

Nearly 90% of the days in the quarter saw net trading activity favor fixed income, according to the Alight Solutions 401(k) Index.

One of the ironies of surveys of U.S. workers’ retirement confidence is that improved economic conditions allow people to look towards the future, which can in itself cause greater financial anxiety.

While passive target-date funds (TDFs) dominate the defined contribution (DC) retirement plan market, Cerulli suggests that touting advantages of active TDFs could make plan sponsors reconsider.

A Vanguard analysis still finds both “pure TDF investors,” or those who hold only a single TDF, and “mixed investors”—investing in a TDF in combination with other investments (or, rarely, hold multiple TDFs). 

CIT-based solutions grew, while mutual fund-based solutions declined in 2018, according to Sway Research.

It was the slowest start to the year in the 20-plus years of the Alight Solutions 401(k) Index. 

With participants not panicking in Q4 2018 and the longer term trends resulting from automatic plan features, Fidelity Investments finds an overall improvement in average participant savings and account balances.