The poor
performance of the target date funds, especially during the two major bear markets since 2000, highlights one of the core tenets of Swan Global Investments» philosophy.
Table 2 details
the performance of these target date funds, along with information on yield, expenses and, importantly, risk.
The performances of these target date funds follow from their strategy.
There are a lot of moving parts to consider when assessing
the performance of a target date fund.
Not exact matches
Voting against the action were Richard W. Fisher, who believed that, while the Committee should be patient in beginning to normalize monetary policy, improvement in the U.S. economic
performance since October has moved forward, further than the majority
of the Committee envisions, the
date when it will likely be appropriate to increase the federal
funds rate; Narayana Kocherlakota, who believed that the Committee's decision, in the context
of ongoing low inflation and falling market - based measures
of longer - term inflation expectations, created undue downside risk to the credibility
of the 2 percent inflation
target; and Charles I. Plosser, who believed that the statement should not stress the importance
of the passage
of time as a key element
of its forward guidance and, given the improvement in economic conditions, should not emphasize the consistency
of the current forward guidance with previous statements.
Of particular concern is the performance of the average Morningstar Target Date 2000 — 2010 fund during the 2007 - 08 correctio
Of particular concern is the
performance of the average Morningstar Target Date 2000 — 2010 fund during the 2007 - 08 correctio
of the average Morningstar
Target Date 2000 — 2010
fund during the 2007 - 08 correction.
There is some evidence that RMAs outperform
target -
date funds, but we believe the long - run historical
performance of an RMA will be generally aligned with
target -
date fund performance.»
Certainly, during the 2008 - 2009 Great Recession,
Target Date 2010
fund performance varied dramatically from participant expectations, triggering hearings in the U.S. Senate Special Committee on Aging, and expert testimony to the Department
of Labor, the Securities & Exchange Commission, plus representatives from the Senate Special Committee on Aging, June 18, 2009.
3
Target date funds invest in other funds, so performance can vary significantly based on the investment restrictions of the target date
Target date funds invest in other
funds, so
performance can vary significantly based on the investment restrictions
of the
target date
target date fund.