September 26, 2017

Brattle Experts Examine Target Date Funds in New Publication

In the first of a series of papers examining key economic, regulatory, and legal issues related to target date funds (TDFs), Brattle experts Chris Laursen, Ioannis Gkatzimas, and Branko Jovanovic provide an overview of TDFs, report on significant market trends, and summarize recent related litigation.

TDFs currently account for over $1 trillion dollars in assets. They have experienced significant growth over the past decade, and are becoming an increasingly important part of the retirement investment universe. These funds are often thought of as holding a mix of debt and equity investments, with the equity proportion declining over time following a predetermined glide path.

In reality, though, current TDFs are far more complex. New regulations, including the recent Department of Labor’s (DOL) Fiduciary Rule, are creating uncertainties for TDFs going forward. Given these dynamics and the sheer size of the TDF market, the current docket of TDF-related litigation is likely to grow.

The paper, "Target Date Funds: Economic Regulatory, and Legal Trends," is available for download below.

Associated Experts
Mr. Gkatzimas' primary focus is on the valuation of complex securities and portfolios for both commercial litigation and regulatory matters. More icon f02782c24cccaf6d90e1da53920c42f20e5a8955f54ac2ca5727ec7dc89987b4
Laursen cropped for web search new
Mr. Laursen is an expert in financial products and institutions, markets, regulation, and risk management. More icon f02782c24cccaf6d90e1da53920c42f20e5a8955f54ac2ca5727ec7dc89987b4
Branko bio 2
Senior Consultant
Branko Jovanovic specializes in providing economic analysis and expert testimony in the areas of securities and finance, and consumer protection across a wide range of industries. More icon f02782c24cccaf6d90e1da53920c42f20e5a8955f54ac2ca5727ec7dc89987b4