Target-date mutual funds saw another year of strong flows in 2016, though not quite as strong as seen in 2015 – and 3 of the 10 largest target-date managers experienced outflows for the year.... Read More
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Target Date Funds
BY NAPA Net Staff | 3/28/2017
A new report finds that 88% of target date mutual fund assets were held through DC plans.The report from the Investment Company Institute notes that as of Dec. 31, 2016, target date mutual fund... Read More
BY NAPA Net Staff | 3/10/2017
A strong demand for passively managed target-date funds resulted in a sizable lead compared with assets in active products, according to new research.In fact, target-date assets in passively managed... Read More
BY Nevin E. Adams, JD | 3/6/2017
A new analysis suggests that incorporating a dynamic glidepath aspect to target date fund design could boost outcomes. Or you could just boost deferral rates by 1%.That report outlines the results of... Read More
BY NAPA Net Staff | 2/6/2017
A new report looks at target-date funds – the impact of market timing, their glide paths, their affinity for “family” funds and how their performance stacks up against a do-it-yourself approach.The... Read More
BY NAPA Net Staff | 1/17/2017
A new report suggests that at least some of the diminution in participant transfer activity can be attributed to the prevalence of target-date funds. According to the Aon Hewitt 401(k) Index, there... Read More
BY Nevin E. Adams, JD | 11/29/2016
Target-date funds continue to expand in usage and popularity – but there are some things the Labor Department wants you to know about TDFs that you may have overlooked.When the Labor Department... Read More
BY NAPA Net Staff | 11/16/2016
A growing number of DC specialists — financial advisors managing at least $50 million in DC assets — are now recommending customized target-date funds to their plan sponsor clients, according to a... Read More
BY Fred Barstein | 10/21/2016
As I discussed in my last post, it’s conventional wisdom that all investments in a retail DC plan must have a three-year track record – but what do industry insiders think?I posed this question to a... Read More
BY Fred Barstein | 10/19/2016
It’s conventional wisdom that all investments in a retail DC plan must have a three-year track record. But do they still, and is three years enough? Or should we judge target-date funds based on a... Read More
BY NAPA Net Staff | 9/13/2016
Many research studies have shown how little investors actually understand about target date funds, and how few use them as the single solution they were designed to be. If “full use” of TDFs is... Read More
BY NAPA Net Staff | 8/22/2016
It is standard practice today to offer a series of TDFs and a fund lineup of single-asset classes in the same plan. But such a structure almost guarantees that the majority of DC investors will fail... Read More
BY NAPA Net Staff | 6/28/2016
Target-date mutual fund assets rose 3.5% in the first quarter, according to a new report, which also notes that the bulk of those TDF fund assets were held through DC plans.The report, by the... Read More
BY Fred Barstein | 5/31/2016
The use of TDFs using CITs is growing rapidly in the large DC plan market, according to studies by Aon Hewitt and Callan – a trend that is expected to move down market. Overall, Callan studies show... Read More
BY NAPA Net Staff | 5/4/2016
With more than 70% of 401(k) plans including target-date funds in their investment lineup, and a growing number of plans adopting auto enrollment and using TDFs as their default fund, you’d expect... Read More
BY NAPA Net Staff | 4/27/2016
On April 25, 2016, we published a post entitled, “Next Wave of RFPs: Target Date Funds.” That post contained what the author purported to be a direct quotation from Richard Dunne, President and CEO... Read More
BY Fred Barstein | 4/25/2016
[REVISED APRIL 28 — SEE EDITOR'S NOTE BELOW]During a discussion about what’s working for his practice, an advisor said that he is having great success with both clients and prospects by leading with... Read More
BY NAPA Net Staff | 4/13/2016
A new report finds that over the past 10 years, target-date fund assets have increased from $116 billion to $763 billion, and enjoyed an all-time high of $69 billion in positive net asset flows in... Read More
BY Fred Barstein | 3/9/2016
At a recent luncheon with elite plan advisors, the issue of using a record keeper’s proprietary target-date funds came up. One advisor stated that he hated it when the record keeper offered to lower... Read More
BY NAPA Net Staff | 3/2/2016
The good news is that most participants aren’t putting all their retirement investment eggs in one basket. The bad news is that we’re talking about target-date fund investors.In fact, a new survey... Read More
BY NAPA Net Staff | 2/11/2016
Target-date funds lost ground last year for the first time since 2008, but the performance gap has narrowed considerably since then, according to a new report.In its first annual loss since 2008, the... Read More
BY NAPA Net Staff | 2/8/2016
A new survey finds that target-date fund users are more confident than non-users that they will reach their retirement goals, and feel greater comfort with investment decision making. On the other... Read More
BY NAPA Net Staff | 12/29/2015
A growing number of plan sponsors are embracing the notion of a “custom” target date fund for their plan, rather than an off-the-shelf offering – but the rationales for and against such options... Read More
BY NAPA Net Staff | 12/14/2015
In a month of mixed returns, participants who took the time to initiate a transfer seemed to be moving away from defaults.Once again target-date funds (TDFs) took the brunt of the outflows: 59% ($118... Read More
BY Nevin E. Adams, JD | 12/7/2015
A surprising number of participants think target-date funds are guaranteed — with some even more surprising rationales for that belief, according to a new survey.Target-date fund users most... Read More
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