Morningstar recently released their 2013 Q2 “Target-Date Fund Series Rating and Research Reports,” which are one-page analyses of the 22 most widely held TDFs. The reports review the glide paths, sub-asset classes and nature and quality of the underlying investments, along with other factors such as asset-weighted expense ratios, active/passive exposure, open/proprietary investments and total net assets. An overall grade is given, including Gold, Silver, Bronze, Neutral and Negative.
Morningstar also reviews the “Five P’s”:
• Process
• Price
• Performance
• People
• Parent
The reports are good, quick-hit reports from a reliable, unbiased source that advisors can reference and use to help plan sponsors who struggle with ways to explain TDFs to participants.
