Greenspring Wealth Management says it created the Target
Date (k)larity product to help defined contribution plan fiduciaries engage
in a prudent process to choose the most appropriate target-date fund (TDF) strategy
for their participants.
“Target Date (k)larity is a comprehensive three-phase,
seven-step target date evaluation process that aligns closely with Department
of Labor guidance from 2013,” the firm explains.
Phase one begins by identifying the goals and needs of the
plan and assessing participant demographics such as age, salary, tenure, as
well as participation and deferral rates. In phase two, Greenspring uses the
information gathered in the first phase to conduct product due
diligence on multiple TDF options—analyzing areas such as asset-class exposure,
glide path construction, performance, risk vs. return and fees. In phase
three, Greenspring makes a TDF recommendation and documents the entire process
with a written executive summary and 25-page recommendation report that sponsors can leverage in audits and regulatory reviews.
“In the past, the selection of TDFs has typically been tied
to the choice of plan provider with little thought given to whether the
solution was right for the plan and participants,” notes Joshua Itzoe, partner
and managing director of Greenspring’s institutional client group. “But with
TDF assets projected to capture nearly 90% of 401(k) contributions by 2019 and
more than 30 different product alternatives, we believe the fiduciary burden
for retirement plan committees to prudently select and monitor TDFs has never
More information on the Target Date (k)larity product line
is at www.greenspringwealth.com/tdk.