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.
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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.
