Tag: TDFs

Lawsuit Over TDFs Names Provider as Defendant

Participants in the CHS/Community Health Systems, Inc. Retirement Savings Plan have filed a lawsuit against the company, its retirement plan committee and the provider of target-date funds (TDFs) in the plan for maintaining excessively expensive and poorly performing underlying investments.

Art by Jackson Epstein

Investment Product and Service Launches

Morgan Stanley builds low-minimum impact portfolio suite; American Century Investments decreases ETF management fee; Sun Life Financial consolidates asset management businesses; and more.

Fidelity Takes on Vanguard With Fee Reductions

Fidelity investments is announcing a 14% price reduction on its target-date funds (TDFs), resulting in most of those funds having lower expense ratios than comparable Vanguard index target-date funds.

DC Plan Participant Use of TDFs Continues to Grow

While target-date funds (TDFs) are intended to automatically diversify retirement plan participants’ portfolios, Vanguard found nearly one-third mix TDFs with other investments and “are pursuing what appear to be reasonable diversification strategies.”

Art by Jenice Kim

Responsible Approaches to Tactically Managing TDFs

Target-date fund (TDF) providers use tactical strategies to support goals of the funds’ glide paths, but responding to a report from a professor of finance at London Business School, providers question whether there is a point where a tactical approach goes too far.

Trend in TDF Move to Passive Management Continues

Sway research finds target-date series that invest in passively managed underlying funds, as well as those that invest in collective investment trusts (CITs) have been increasing, while target-date series that invest in actively managed underlying funds saw their market share fall.

DC Plan Sponsors Slow to Adopt Hybrid QDIAs

Just as defined contribution (DC) plan sponsors were once concerned about automatically enrolling employees in the plan when they didn’t actively select it, they have hesitations about using qualified default investment alternatives (QDIAs) that automatically place participants in a managed account.