Callan’s new index is constructed from actual glidepath data using no pre-set criteria or other filters which can make an index vulnerable to claims of being biased or subjective.
Features of the Callan Target Date Index include:
- At-a-glance snapshot of the index and target-date fund peer group’s performance across the full glidepath;
- Drill down of performance within each of the target-date vintage years;
- View the underlying asset class composition and glidepath allocation at a macro level and micro level; and
- Equity roll down analysis chart that shows the percentage of equity allocation of the index across the full asset allocation glidepath, along with the range of equity allocations available.
“Benchmarking target-date funds is important to plan sponsors from a due diligence and fiduciary standpoint, but it’s also quite challenging,” said Lori Lucas, defined contribution practice leader at Callan. “There are a lot of moving pieces to managing these funds, and the Callan Target Date Index can give plan sponsors an accurate picture of how their funds are performing and are invested compared to other glidepaths.”
To start using the Callan Target Date Index, visit: http://www.callan.com/research/tdvantage/.
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