Friday, May 22, 2009
The SEC and the Department of Labor announced today that they are accepting requests to participate in a joint hearing on June 18 examining target date funds. Target date funds and other similar investment options are investment products that allocate their investments among various asset classes and automatically shift that allocation to more conservative investments as a “target” date approaches. This shift in asset allocation, often referred to as a fund’s “glide path,” may differ significantly among funds with the same target date.
Discussion topics at the joint hearing will include issues related to how target date fund managers determine asset allocations and changes to asset allocations (including glide paths) over the course of a fund’s operation; how they select and monitor underlying investments; how the foregoing and related risks are disclosed to investors; and the approaches or factors for comparing and evaluating target date funds.
The Commission requests persons interested in presenting testimony and answering questions at this public hearing to submit a written request to participate along with an outline of topics to be discussed. The information that is submitted will become part of the public record of the joint hearing.