PLANSPONSOR - August/September 2019 - 31

2019 PLANSPONSOR TARGET-DATE FUND SURVEY
ON
N
Art by Marcos Chin
TARGET
A preponderance
of target-date
fund strategies
emphasized
the need for
an evaluation
process
early three out of four (73.3%) plan sponsors use a target-date fund (TDF) as their
default investment, according to the 2018 PLANSPONSOR Defined Contribution
(DC) Survey. The percentage was almost 13% less-60.6%-in 2014.
It is easy to understand the appeal of these funds: a single investment solution
that offers a diversified, self-adjusting asset allocation, which has the ability to keep
participants onboard for the long term-sometimes referred to as " set it and forget it. "
The general premise of a target-date fund is that the asset allocation becomes more
conservative as it gets closer to its target date, though how-and when-varies from
manager to manager.
However, according to a recent survey from J.P. Morgan Asset Management, while
75% of sponsors are highly confident in their selection and monitoring of TDFs, 30%
said they lacked a solid understanding of how their TDFs work. As more and more funds
appear in the marketplace, it is increasingly important to be well-informed so you can
choose the right one for your plan.
As established as target-date funds have become, managers continue to develop their
thinking and underlying allocations-and there is still room for new entrants. This evolution
in TDFs may include changes in allocation targets or underlying funds. For example,
new to the survey this year are Total Advantage Funds from Legg Mason. That company
saw an opportunity to introduce what it describes as " a unique combination of proprietary
features [that] works to elevate the certainty of outcomes through next-generation diversification
and a process of adaptive allocation in a CIT [collective investment trust] structure. "
While the survey is not inclusive of every product in the TDF universe, our participation
rate of 70 TDF products encompasses $1.8 trillion, as of June 30. Of the target-date
fund market reported, 38 are in mutual funds, 24 in CITs and eight in variable portfolios.
The following analysis is based on the 70 off-the-shelf, or prepackaged, products in
our listings (custom solutions are excluded), starting on page 36.
Key to any plan sponsor due diligence process that involves fund differentiation is
to examine the asset manager's philosophy and methodologies such as how he may use
passive management or unaffiliated investment managers.
There is a range of reasons for plan sponsors-whether they are seeking active,
PLANSPONSOR.com August - September 2019 31

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PLANSPONSOR - August/September 2019

Table of Contents for the Digital Edition of PLANSPONSOR - August/September 2019

Reality Check
2019 PLANSPONSOR Target-Date Fund Survey
2019 PLANSPONSOR Participant Survey
2019 PLANSPONSOR National Conference
Opportunities Grow
Real Estate Has Been a Haven
Health Savings Strategies
PLANSPONSOR - August/September 2019 - C1
PLANSPONSOR - August/September 2019 - FC1
PLANSPONSOR - August/September 2019 - FC2
PLANSPONSOR - August/September 2019 - C2
PLANSPONSOR - August/September 2019 - 1
PLANSPONSOR - August/September 2019 - 2
PLANSPONSOR - August/September 2019 - 3
PLANSPONSOR - August/September 2019 - 4
PLANSPONSOR - August/September 2019 - 5
PLANSPONSOR - August/September 2019 - 6
PLANSPONSOR - August/September 2019 - 7
PLANSPONSOR - August/September 2019 - 8
PLANSPONSOR - August/September 2019 - 9
PLANSPONSOR - August/September 2019 - 10
PLANSPONSOR - August/September 2019 - 11
PLANSPONSOR - August/September 2019 - 12
PLANSPONSOR - August/September 2019 - 13
PLANSPONSOR - August/September 2019 - 14
PLANSPONSOR - August/September 2019 - 15
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PLANSPONSOR - August/September 2019 - 18
PLANSPONSOR - August/September 2019 - 19
PLANSPONSOR - August/September 2019 - 20
PLANSPONSOR - August/September 2019 - 21
PLANSPONSOR - August/September 2019 - 22
PLANSPONSOR - August/September 2019 - 23
PLANSPONSOR - August/September 2019 - Reality Check
PLANSPONSOR - August/September 2019 - 25
PLANSPONSOR - August/September 2019 - 26
PLANSPONSOR - August/September 2019 - 27
PLANSPONSOR - August/September 2019 - 28
PLANSPONSOR - August/September 2019 - 29
PLANSPONSOR - August/September 2019 - 2019 PLANSPONSOR Target-Date Fund Survey
PLANSPONSOR - August/September 2019 - 31
PLANSPONSOR - August/September 2019 - 32
PLANSPONSOR - August/September 2019 - 33
PLANSPONSOR - August/September 2019 - 34
PLANSPONSOR - August/September 2019 - 35
PLANSPONSOR - August/September 2019 - 36
PLANSPONSOR - August/September 2019 - 37
PLANSPONSOR - August/September 2019 - 38
PLANSPONSOR - August/September 2019 - 39
PLANSPONSOR - August/September 2019 - 2019 PLANSPONSOR Participant Survey
PLANSPONSOR - August/September 2019 - 41
PLANSPONSOR - August/September 2019 - 42
PLANSPONSOR - August/September 2019 - 43
PLANSPONSOR - August/September 2019 - 44
PLANSPONSOR - August/September 2019 - 45
PLANSPONSOR - August/September 2019 - 2019 PLANSPONSOR National Conference
PLANSPONSOR - August/September 2019 - 47
PLANSPONSOR - August/September 2019 - 48
PLANSPONSOR - August/September 2019 - 49
PLANSPONSOR - August/September 2019 - 50
PLANSPONSOR - August/September 2019 - 51
PLANSPONSOR - August/September 2019 - 52
PLANSPONSOR - August/September 2019 - 53
PLANSPONSOR - August/September 2019 - 54
PLANSPONSOR - August/September 2019 - 55
PLANSPONSOR - August/September 2019 - Opportunities Grow
PLANSPONSOR - August/September 2019 - 57
PLANSPONSOR - August/September 2019 - Real Estate Has Been a Haven
PLANSPONSOR - August/September 2019 - 59
PLANSPONSOR - August/September 2019 - Health Savings Strategies
PLANSPONSOR - August/September 2019 - 61
PLANSPONSOR - August/September 2019 - 62
PLANSPONSOR - August/September 2019 - 63
PLANSPONSOR - August/September 2019 - 64
PLANSPONSOR - August/September 2019 - C3
PLANSPONSOR - August/September 2019 - C4
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