Research explored the allocation decisions of 30,516 mixed target-date fund (TDF) investors to determine which types of investors are more susceptible to mixing TDFs and how they mix them.
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.
A litigation firm has listed what it is investigating for potential lawsuits over target-date funds (TDFs) in retirement plans, and an ERISA attorney makes suggestions for how plan fiduciaries may avoid such suits.
The complaint says the target-date funds used in the plan and as the designated default investment were underperforming since they were selected, resulting in a great loss to participants.
The adoption of enhanced defined contribution (DC) plan features has led to increased plan participation and optimized portfolio construction for small business employees, according to Vanguard.
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.
Cerulli Associates points to active target-date fund (TDF) performance during market volatility and the ability to mitigate sequence of return risk for defined contribution (DC) plan participants as reasons to consider them.
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.”
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.
Most 401(k) trading in the month favored fixed income investments.
The guide provides a checklist for periodic reviews, key questions to ask and items to consider.
A retirement plan’s default investment could have drawbacks for some employees.
Many participants see the match percentage as a suggestion for how much to save; the majority of participants support automatic plan features; and even participants who are hands-on with investing like TDFs, J.P. Morgan found.
SSGA is following the trend of providers lowering investment fees, and sees an opportunity to attract 403(b) plan sponsors.