A Russell news release said its methodology, unveiled in September 2009, measures how well a fund family performed during a specific time period, to allow investors a way to evaluate various target-date offerings (see Russell Unveils T-D Fund Family Performance Metrics).
The T. Rowe Price family came out with a 207.7 ratio for a one-year period through the end of 2009. Others in the top five for Russell’s one-year ranking included:
- JHancock2 Lifecycle, 206.8
- Oppenheimer Transition, 194.8
- AllianceBernstein Retirement Strategy, 171.7
- Franklin Templeton Retirement Target, 171.5
Russell said it compared the retirement wealth generated by a family of target date funds to the wealth generated by some selected benchmark over typical historical intervals. The calculation took into account all aspects of the each family’s investment process, including active management, asset allocations within equity and fixed income, and glide path design.
The company said the weight attached to each fund’s return was determined by the location of each fund along the glide path, and the pattern of cash contributions.
For more information, go to http://www.russell.com/indexes/promo/target_date_metric.asp.
Russell Target-Date Metric
Target-Date Fund Family
3-year ratio through 4Q09
Franklin Templeton Retirement
American Century LIVESTRONG
Wells Fargo Advantage
JPMorgan Smart Retirement
Source: Russell Investments