Tag: target-date funds

MassMutual debuts RetireSMART TDF series with J.P. Morgan glide paths, while AXA doubles down on SRI/ESG integration.

Securian Incorporates Custom Investment Models and American Century Expands ETF Suite.

Among those who did trade, the majority put assets into fixed income vehicles.

SSGA is following the trend of providers lowering investment fees, and sees an opportunity to attract 403(b) plan sponsors.

Lincoln Financial creates personalized target-date portfolios; Aon Hewitt-managed pooled funds claim compliance with GIPS; Vanguard launches Global Credit Bond Fund; and more.

Morningstar warns that the distinction between "active" and "passive" target-date series has become more muddled in recent years.

Vanguard expands commission-free ETF transactions; MassMutual and T. Rowe Price create TDF collaboration; Johnson Investment Counsel adds Charles River as wealth management business; and more.

In addition, Vanguard found among its book of business a large increase in the number of small businesses offering retirement plans to employees.

There are a number of investment vehicles to consider when drafting a plan menu that best suits the plan's participants.

“[When] investors commit to consistent investment regimes, investor returns are strong and the gaps are often positive," Morningstar says.

Vanguard believes it’s an important part of due diligence to consider custom options.

When constructing their own retirement portfolio, about 10% of participants still hold extreme allocations—either 0% or 100% equities.

MassMutual introduces new TDFs, and Krane Funds Advisors creates CIT for retirement plans.

According to Jake Tshudy at SEI, “An actuarial valuation approach akin to a DB plan is the best strategy to determine if a TDF series has the appropriate level of risk based on a plan’s demographics.”

Target-date fund designs should take into account the risks retirement plan participants face—how to correlate and corral the evolving sources of market, event, longevity, inflation and interest rate risks.

Average individual 401(k), 403(b) and IRA account balances increased year-over-year, according to the latest cut of data from Fidelity’s book of retirement business, but the average dipped slightly from Q4 2017, reflecting market volatility and the fact that new small-balance savers entered the fold.

However, an analysis from Alight Solutions found users of managed accounts see higher returns, are more diversified and save more in their DC plans than TDF users.

Russell Investments Presents New ESG Score Framework; Merrill Lynch Reveals New ESG Portfolios; EDHEC-Risk Institute Reexamines Retirement Products; and more.

The lawsuit questions the selection of underlying investments for the Principal LifeTime Hybrid Collective Investment Funds, alleging Principal used proprietary investment vehicles, rather than other investment vehicles, and share classes with higher fees.