Target-date funds, revolutionaries of the defined contribution market, are managed as "relics of the past" and in need of sweeping innovation, according to new research from AllianceBernstein.
As the past decade has seen TDFs reach compound in 401(k) menus, their design has become static, reliant on single managers, archaic equity-to-bond portfolio balancing ratios, and little deference to the vital need of income distribution in retirement.
By far the most utilized plan default option, TDFs' failure to keep up with product innovation and the best practices of fiduciaries to pensions and endowments has put defined contribution participants' security at risk, says AllianceBernstein.
Complete your profile to continue reading and get FREE access to BenefitsPRO, part of your ALM digital membership.
Your access to unlimited BenefitsPRO content isn’t changing.
Once you are an ALM digital member, you’ll receive:
- Breaking benefits news and analysis, on-site and via our newsletters and custom alerts
- Educational webcasts, white papers, and ebooks from industry thought leaders
- Critical converage of the property casualty insurance and financial advisory markets on our other ALM sites, PropertyCasualty360 and ThinkAdvisor
Already have an account? Sign In Now
© 2024 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.
Nick Thornton
Nick Thornton is a financial writer covering retirement and health care issues for BenefitsPRO and ALM Media. He greatly enjoys learning from the vast minds in the legal, academic, advisory and money management communities when covering the retirement space. He's also written on international marketing trends, financial institution risk management, defense and energy issues, the restaurant industry in New York City, surfing, cigars, rum, travel, and fishing. When not writing, he's pushing into some land or water.
