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Target Date Funds

BY Fred Barstein | 9/9/2014
When TDFs first came out, some advisors saw them as a threat — especially when the record keeper only offered one option, usually their own. For advisors who saw their value primarily in... Read More
BY Fred Barstein | 9/5/2014
In a further sign of the difficulties that ETFs are having trying to crack the 401(k) market, BlackRock’s iShares division is shutting down its exchange-traded TDF. The fund had... Read More
BY John Iekel | 8/8/2014
Many of the enhancements touted for defined contribution plan design are said to make them operate more like defined benefit plans — but does that apply to target-date fund (TDF) designs? A... Read More
BY John Iekel | 7/16/2014
Target date funds are growing and likely to comprise a larger percentage of 401(k) assets, says Paladin Registry, an independent educational resource for investors.  Paladin cites statistics... Read More
BY John Ortman | 7/11/2014
Since the SEC reopened the comment period on its target date fund proposal in April, the commission has received 29 comment letters generally favoring appropriately tailored enhanced disclosure... Read More
BY Fred Barstein | 7/7/2014
Passive strategies continue to dominate not only the investing world but also the TDF market, driving prices down and leading to better performance, according to a recent Morningstar report. The... Read More
BY Ronald J. Triche | 7/2/2014
On July 2, 2014, the NAPA Government Affairs Committee submitted a comment letter to the DOL in response to its request for comments regarding a proposed rulemaking on target date fund disclosures.... Read More
BY John Ortman | 6/13/2014
Despite some shared alignments in design and principles, TDFs are anything but uniform in their philosophies regarding glide path, asset allocation mix and even the application of the target date... Read More
BY Jerry Bramlett | 5/22/2014
A recent study conducted by Financial Engines and Aon Hewitt, “Help in Defined Contribution Plans: 2006 Through 2012,” explores the impact of using “help.” The study, which was noted in a May 20 NAPA... Read More
BY John Iekel | 5/21/2014
A recent study by Financial Engines and Aon Hewitt says that target date funds work best if a plan participant invests all or nearly all of their retirement assets in them. Barrons also weighs in on... Read More
BY Fred Barstein | 5/20/2014
While TDFs have less assets than target risk funds (TRFs), they grew at a faster clip in the first quarter of this year, gaining 5% or $30 billion. TRFs lost $1.5 billion over that same period.... Read More
BY Fred Barstein | 5/19/2014
TDFs are all the rage these days. But did you know that target risk funds (TRFs) have more assets? According to a Q1 2014 report by Ibbotson, a Morningstar subsidiary, TRFs have $722 billion of AUM.... Read More
BY Fred Barstein | 5/16/2014
In a far-reaching white paper, BlackRock takes on the question of which is better: “to” or “through” TDFs. With the growing popularity and nearly ubiquitous presence of TDFs in DC plans, the question... Read More
BY Jerry Bramlett | 5/7/2014
A recent Hewitt EnnisKnupp (HEK) blog post, “A Primer on Custom Target Date Funds,” provides an excellent short overview on custom target date funds (CTDFs). The post focuses on defining what a CTDF... Read More
BY Fred Barstein | 4/21/2014
According to research by ING, plan participants who use TDFs are more confident about meeting their retirement goals. They also defer more and are less stressed. In an online survey of more than 1,... Read More
BY Fred Barstein | 4/9/2014
According to custodian Northern Trust, TDFs were the largest gainer of flows into DC plans last year, at the expense of fixed income. Based on nearly 100 plans with 1.7 million participants and $225... Read More
BY Fred Barstein | 4/4/2014
Having trouble trying to compare TDFs? You’re not alone, and the SEC has noticed. The agency announced April 3 that it is seeking comments on recommendations made by the Investment Advisory Committee... Read More
BY Fred Barstein | 4/2/2014
It looks like custom TDFs might have some life after all, according to a February survey of 285 DC plan executives by SEI. While just 12% indicated that they currently use custom TDFs, that... Read More
BY John Ortman | 3/24/2014
It may have been 20 years since Sgt. Pepper taught the band to play, but their music stopped long ago. Not so with the target date fund concept, which celebrates its 20th birthday this month, and is... Read More
BY Fred Barstein | 2/18/2014
Based on last year’s DOL guidance to plan sponsors on evaluating TDFs and their growing popularity as a QDIA, the Defined Contribution Institutional Investment Association has released a... Read More
BY Fred Barstein | 2/12/2014
Target date funds continue to gain momentum in DC plans, according to a study by P... Read More
BY Jerry Bramlett | 1/23/2014
The title of a recent post by Schneider Downs, “New Trend in 401(k) Plans May Be a Headache for Fiduciaries” is a good description of what plan sponsors face as it relates to target-date funds.There... Read More
BY John Iekel | 1/17/2014
Target date funds reflect that flexibility and engagement have become firmly entrenched aspects of retirement plan management for both participants and plan sponsors. In a Jan. 14 NAPA webinar, “... Read More
BY Jerry Bramlett | 1/10/2014
Two recent studies challenge the most fundamental assumption undergirding the construction of virtually all target-date glide paths: that the best strategy is to wind down equity exposure as a DC... Read More
BY NAPA Net Staff | 1/9/2014
The Great Recession brought an inordinate amount of scrutiny to target date funds from both industry experts and political organizations. And the scrutiny came with good reason: Some estimates show... Read More