Fidelity TDF Fees Rival Vanguard’s After Reductions
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.
Tag: TDFs
Retirement Plan Sponsors Increasingly Look for Low-Cost TDFs
This is driving providers to offer inexpensive options, such as series that rely on CITs and passive funds, Morningstar says.
Active TDFs May Help With Market Volatility, Sequence Risk
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.
Automatic Enrollment a Major Factor in Rise of DC Plan TDF Use
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).
Some Say Investors Are Better Served by Tactical TDFs
The Great Recession prompted many target-date fund managers to begin to consider tactical glide-path deviations based on market conditions and forecasts.
Target-Date Solutions Reach $1.77 Trillion in Assets
CIT-based solutions grew, while mutual fund-based solutions declined in 2018, according to Sway Research.
Plan Sponsors Have Questions About Dynamic Default Investments
Progressive plan design features take time to catch on, including the emerging “hybrid QDIA” approach that pairs TDFs and managed accounts; experts say plan sponsors are interested, but they remain unsure about the right way to design and deliver a dynamic default investment.
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Investment Product and Service Launches
ProShares unveils ETF suite; TRPC adds Stadion StoryLine to retirement solutions platform, T. Rowe Price creates Dynamic Credit Fund.
November Was a Typical Month for Trading in 401(k) Plans
There were only three days of above-normal trading, according to the Alight Solutions 401(k) Index
Progressive Plan Design Features Have Moved Down-Market
These are streamlining plan administration, increasing investment diversification and improving participant outcomes.
Vanguard Provides Checklist for Evaluating TDFs
The checklist is included in a guide that offers questions to ask and items to consider.
A Retirement Plan’s Default Investment Is Not for Every Employee
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.
DC Plan Features Appreciated by Participants Who Want Saving and Investing Help
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.”
PANC 2018 – Top Trends
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.
TDFs Particularly Popular Among Younger Investors
Sixty-four percent of participants in their 20s own a TDF.
SSGA Merging TDF Series A Shares With I Shares
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.
Investment Product and Service Launches
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.
TDF Providers Adapted to Low-Cost Demand, But Plan Sponsors Still Need to Be Diligent
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.
HSAs Need to Offer Equities, Multi-Assets and Fixed Income, Devenir Says
It would also be good for them to include emerging markets equities, target-date funds, alternatives, international bonds and specialty bonds.
PSNC 2018: Investment Lineup Design and Construction Can Safeguard Retirement Savings
Panelists discussed numerous investment options that can push additional retirement savings.