401(k) Specialist Issue 1 - 2015 - 23

TARGET DATE FUNDS
Target Date Fund Performance by 3-Year Return (Morningstar)
Name
Ticker
Morningstar Category
Putnam RetirementReady 2055 A PRRFX US OE Target Date 2051+
Inception
Date
11/30/10
Putnam RetirementReady 2050 A PRRJX US OE Target Date 2046-2050 5/2/05
T. Rowe Price Retirement 2040 TRRDX US OE Target Date 2036-2040 9/30/02
T. Rowe Price Retirement 2045
TRRKX US OE Target Date 2041-2045 5/31/05
T. Rowe Price Retirement 2055 TRRNX US OE Target Date 2051+
TIAA-CREF Lifecycle 2045 Instl
TIAA-CREF Lifecycle 2055 Instl
TIAA-CREF Lifecycle 2050 Instl
12/29/06
Putnam RetirementReady 2045 A PRVLX US OE Target Date 2041-2045 11/1/04
TTFIX US OE Target Date 2041-2045 11/30/07
TTRIX US OE Target Date 2051+
4/29/11
TFTIX US OE Target Date 2046-2050 11/30/07
T. Rowe Price Retirement 2050 Adv PARFX US OE Target Date 2046-2050 12/29/06
Fund Size
5,307,843
24,963,013
17,183,969,386
7,803,978,743
1,898,099,138
29,945,019
1,389,488,524
155,669,574
815,950,522
5,872,454,630
16.280
16.101
15.621
15.605
15.600
15.543
15.408
15.386
15.385
15.301
Total Ret Annlzd
3 Yr (Daily)
date suite is managed by a team of just over
100 investment professionals located in London,
New York and Hong Kong. It claims access
to over 250 investment strategies, as well
as proprietary insights into asset allocation,
investment selection and risk management.
AMERICAN FUNDS TARGET DATE
RETIRE FUNDS
Nothing fancy here, but maybe that's the
point.
American Funds notes that the 11 funds
in the American Funds Target Date Retirement
Series are designed around retirement
dates that are spaced five years apart, ranging
from 2010 to 2060.
" Each of the target date funds could serve
as a single, diversified retirement investment, "
according to the company. " Each fund invests
in a mix of American Funds-mutual funds
managed with a long-term focus based on
thorough research and attention to risk. "
Fund portfolios are managed and periodically
adjusted over time. The funds have a
more growth-oriented strategy when retirement
is years away and a more income-oriented
focus as the fund gets closer to its
target date. The target date is the year in
which an investor is assumed to retire and
begin taking withdrawals.
After the retirement date is reached, it
concludes, each fund will be managed for
30 years to pursue income, capital conservation
and some growth.
MANAGED RETIREMENT INCOME
PAYOUT FUNDS
Like their TDF older siblings, managed
payout funds have experienced some serious
tweaks in their relatively short life, but now
seem to be doing better.
" Managed payout funds are mutual
funds designed to provide a steady stream
of retirement income while still allowing
retirees access to their money during their
lifetime, " noted Diana McCarthy and David
Williams of fiduciary powerhouse Drinker
Biddle & Reath in 2013. " The launch of
these products coincided with the economic
downturn, which adversely affected
their popularity and growth for a time. As
the economy has rallied, however, managed
payout funds are gaining more assets. "
They conclude by reinforcing Holt's point.
" They are probably most useful for investors
who have other sources of steady income,
whether they be annuities, GMWBs,
pensions or other sources. "
PIMCO REALPATH BLEND
It lost Bill Gross, but gained some hybrid
target date funds. PIMCO announced in
May that it's expanding its target date fund
INAUGURAL 2015 | 401kSpecialistmag.com 23
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401(k) Specialist Issue 1 - 2015

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