A TDF may invest its assets into index-based securities that do not make tactical adjustments as the markets change—but the act of managing even an index-based portfolio according to a glide path that ramps down equity risk over time will always be at least in part fundamentally “active.”
“The world is moving toward big data, and thus far as an industry we haven’t been able to use big data in a meaningful way. We are now in the midst of a paradigm shift that will allow plan sponsors to make data-driven decisions in an entirely new way,” says Thomas Idzorek, with Morningstar Investment Management.
A U.S. District Court Judge agreed with Wells Fargo that allegations that the bank breached its fiduciary duty by continuing to invest in its own TDFs when better-performing funds were available at a lower cost are insufficient to plausibly allege a breach of fiduciary duty.
Fidelity announced it will allow wider third-party access to Portfolio Advisory Service at Work, a managed account offering that delivers personalized investment management for retirement plan participants.
With different underlying allocations and fee structures, it is up to plan sponsors and their supporting advisers and consultants to select the proper TDF approach for their participants’ unique preferences and needs.