Securities and Exchange Commissioner Luis Aguilar on Thursdaycalled on the agency to do more to warn anyone saving forretirement about the “inherent risks” in target-datefunds and to require better disclosure rules in municipalbonds.

The “relentless” growth in TDFs is “troubling,” Aguilar said,especially because Americans saving for retirement lack a fullappreciation for their inherent risk. Also, a lack oftransparency in municipal bonds, he said, is leaving investors“vulnerable.”

“The stakes are too high to continue to delay,” Aguilar, one oftwo Democrats on the commission, said in speech at the American Retirement Initiative’s winter summit.

“With the end of an historic period of low interest rates rapidlyapproaching, the consequences of investors continuing to beill-informed about the inherent risks of target-date funds aresimply too grave.”

Total assets in target-date funds are about $1trillion. The Investment Company Institute says that nearlythree-quarters of 401(k) plans offer the funds, which now accountfor 15 percent of all 401(k) assets, a figure many analysts expectto grow exponentially going forward.

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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.