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.
This is driving providers to offer inexpensive options, such as series that rely on CITs and passive funds, Morningstar says.
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.
ProShares unveils ETF suite; TRPC adds Stadion StoryLine to retirement solutions platform, T. Rowe Price creates Dynamic Credit Fund.
There were only three days of above-normal trading, according to the Alight Solutions 401(k) Index
The checklist is included in a guide that offers questions to ask and items to consider.
The retirement plan sponsor’s choice of a default investment should not reflect the full distribution of employee investor types, but rather those who would select it, a research report suggests.
Sixty-one percent of all participants surveyed by J.P. Morgan agreed with the statement, “If I could push an ‘easy’ button for retirement and completely hand over my retirement planning and investing to a financial professional, I would.”
A look at actively managed versus passively managed equity and bond funds, blended target-date funds, and with more sponsors encouraging retirees to remain in their plan, how defined contribution plans need to address retirement income solutions.
Sixty-four percent of participants in their 20s own a TDF.
Greg Porteous, head of defined contribution intermediary distribution at SSGA based in Boston, says he sees the lowering of target-date fund (TDF) investment fees as a way to attract more 403(b) plan clients for two reasons.
Lincoln Financial Creates Personalized Target-Date Portfolios; Aon Hewitt-Managed Pooled Funds Claim Compliance with GIPS; Broadridge Financial Increases Data and Analytics Team; and more.
Investors in TDFs need to look beyond price tags to investment strategy to determine the appropriateness of the fees and should be mindful of the relatively tight dispersion of returns within TDF categories, Morningstar warns.
It would also be good for them to include emerging markets equities, target-date funds, alternatives, international bonds and specialty bonds.
Panelists discussed numerous investment options that can push additional retirement savings.