You’ve doubtless at some point in your career had someone walk up to you and say “I’ve got good news, and I’ve got some bad news.” Well, there was good news – and some not-so-good news about plan... Read More
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Target Date Funds
BY Ted Godbout | 6/7/2018
Target-date funds have continued to reshape the investment patterns of retirement savers and are now expected to make up the vast majority of DC plan investments in less than five years, new research... Read More
BY NAPA Net Staff | 5/15/2018
Assets in target-date mutual funds totaled roughly $1.11 trillion at the end of 2017, up from $880 billion at year-end 2016 – but that’s not the most intriguing trend.According to Morningstar’s “2018... Read More
BY Ted Godbout | 4/11/2018
Potentially fueled by the desires of plan sponsors to reduce fees, there continues to be a move toward passively managed target date funds, according to an analysis by Mercer.In its “Target Date... Read More
BY Jerry Bramlett | 4/5/2018
One of the simplest investment options for the average DC investor, and one that can be very effective in achieving long-term retirement goals, is the good old target-date fund. Unfortunately, as two... Read More
BY Ted Godbout | 3/12/2018
Long utilized in DC plans to help participants save for retirement, target date funds have “untapped potential” to support retirement spending, new survey results suggest.BlackRock’s latest DC Pulse... Read More
BY Ted Godbout | 3/8/2018
Fueled by the strong stock market performance in 2017, assets in mutual fund and CIT-based target-date solutions continued to see impressive growth, with passive strategies still gaining market share... Read More
BY Nevin E. Adams, JD | 2/8/2018
TDFs are helping a new generation of savers invest appropriately – but what will the next generation of target-date funds bring to the fore?It’s been nearly a quarter century since the first target-... Read More
BY Ted Godbout | 11/8/2017
Despite the challenging barriers to entering a concentrated market, a new study points to open-architecture series as a way for target-date fund managers to benefit from increased demand for their... Read More
BY Ted Godbout | 8/10/2017
Extending their first-quarter gains, target-date funds posted a return of 2.83% in the second quarter, with diversification to non-U.S. equities helping drive TDF performance, according to the Callan... Read More
BY NAPA Net Staff | 5/16/2017
A new whitepaper raises three questions regarding the structure, management and cost-benefit balance of different fixed income strategies in considering an appropriate target-date fund for a DC plan.... Read More
BY NAPA Net Staff | 4/24/2017
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
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
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