Institutional Target Date Funds
Not all target date funds are created equal, which can lead to varying outcomes for DC plan participants.
Things to consider when evaluating target date funds:
Look beyond a single manager solution for broader diversification and strong manager expertise.
Non-proprietary Target Date Funds (TDFs) offer advantages by including component funds that are managed by investment managers other than the TDF provider, thus diversifying plan participants’ exposure to one investment provider.
Our target date funds' open architecture gives your participants access to ‘best in breed’ Russell Investments-researched investment managers.
Consider how glide path design and asset allocation strategies can help participants reach their income replacement targets.
Backed by solid research, our Target Date Funds’ glide path is designed to help participants reach their retirement income goal, while managing the risk of shortfall—to and through retirement.
Our target date funds also offer participants access to a broad range of asset classes including U.S., non-U.S., and global equities, real assets, bonds and TIPS.
Review fees and investment expenses.
Costs can vary significantly, potentially reducing participants long-term retirement savings.
Russell Investments' target date funds are institutionally priced offerings blending both active and passive underlying funds. This helps manage overall fund costs, while offering participants the potential benefit of excess returns through active management.
Target date fund investing involves risk, principal loss is possible. The principal value of the fund is not guaranteed at any time, including the target date. The target date is the approximate date when investors plan to retire and would likely stop making new investments in the fund.
Please remember that all investments carry some level of risk, including the potential loss of principal invested. They do not typically grow at an even rate of return and may experience negative growth. As with any type of portfolio structuring, attempting to reduce risk and increase return could, at certain times, unintentionally reduce returns.