Are 401k Target Date Funds Missing the Mark?

The interest in target date funds is still red hot even several months removed from the first round of hearings held by the DOL/SEC. BrightScope has done its best to provide data and research support to those interested in studying target date funds. Earlier today BrightScope CEO Mike Alfred appeared on CNBC alongside Michael Smith of Avatar Associates to discuss the role of target date funds in 401k plans, and particularly some of the research BrightScope has done on the topic:

Earlier this week the GAO released a report on the impact automatic enrollment has had on 401k participation rates and retirement savings.  A section of the report examined the role of Target Date Funds (TDF’s) in defined contribution plans. On Wednesday, Senator Herb Kohl, the Chairman of the Senate Aging Committee will hold a hearing on the “proliferation, composition, and regulation of target date funds.” Hearing details are below:

WHAT: Special Committee on Aging Hearing

Default Nation: Are 401(k) Target Date Funds Missing the Mark?

WHEN: Wednesday, October 28, 2009 at 2:00 p.m.

WHERE: 562 Dirksen Senate Office Building


Barbara Bovbjerg, Director of Education, Workforce and Income Security, GAO

Andrew Donahue, Director of Investment Management, United States Securities and Exchange Commission

The Honorable Phyllis C. Borzi, Assistant Secretary of Labor, Employee Benefits Security Administration, DOL

John Rekenthaler, CFA, Vice President of Research, Morningstar

Ralph Derbyshire, General Counsel, Personal and Workplace Investing, Fidelity

Michael Case Smith, Senior Vice President, Institutional Strategies, Avatar Associates