The lawsuit argues that while the TDFs in the plan are CITs, they are private label CITs with much higher expense ratios than the typical CITs offered by JPMorgan.
The equity side of the portfolio tends to get a lot of air time, but experts agree that a more balanced approach should increase the likelihood of participants attaining their desired outcomes.
Citing previous court decisions, a judge said dismissal is not proper at this early stage and the plaintiffs lack the information to detail their claims until discovery proceeds.
Franklin Templeton launches new funds, and Wells Fargo incorporates changes to TDFs.
Investors continue to favor fixed income, the Alight Solutions 401(k) Index finds.
Lincoln Financial Group and Capital Group combine TDFs and annuities; Federated Investors, Inc. to rename brand and ticker symbol; and MSCI publishes principles of sustainable investing.
Jason Shapiro notes that some DC plan participants may stay in their plan after retirement and rely on TDFs’ asset allocation for retirement income for possibly 30 years or even more.
The research paper not only illustrates potential return characteristics and diversification benefits, but also offers allocation strategies to guide investment decision making.
The Securities and Exchange Commission’s (SEC)’s Office of Compliance Inspections and Examinations found some concerns related to money market funds and target-date funds.
Comparing the “quality” of target-date funds is not a straightforward operation. One must decide how to prioritize performance, risk and many other factors when making a prudent investment decision.
Experts say this has never been more important, with TDFs projected to hold more than half of all retirement plan assets by 2025.
Willis Towers Watson’s Thinking Ahead Institute says defined contribution plan designs and communications will leverage technology to deliver a far more customized experience for participants.
Mesirow Financial presents third mutual fund and managed account program, and MSCI builds indexes to track long-term megatrends.
The 2019 PLANSPONSOR Target-Date Fund (TDF) Buyer’s Guide breaks down the custom TDF market by provider, series name, glide path landing point, number of funds per series, and according to the underlying fund vehicle.
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.