2024 Regional Summits | Target Date Perspectives

Investment Analyst, Ellie Armstrong, leads an information packed panel with Mark Ferraro (Capital Group/American Funds), Andrew Kuhn (T. Rowe Price), and Kyle Schmit (BlackRock). The panelists covered a wide range of important topics related to Target Date Funds, such as glide pathways, asset allocation, fixed income, co-manufactured and custom solutions, inflation hedging, and anticipated developments in the industry, including retirement income.

The panelists talked about what their company's glide routes were trying to achieve. For instance, Mark from Capital Group described how their glide paths shift from growth to dividend-paying strategies as participants approach retirement, while Kyle discussed BlackRock's GPS (Growth, Protect, Spend) strategy and the importance of maximizing growth assets early in the glide path. T. Rowe Price's Andrew said that they offer multiple glide paths that are tailored to different plan populations.

The speakers discussed how their target date offers have recently changed. Andrew talked about how T. Rowe Price improved downside risk mitigation by adding additional building blocks, and Mark talked about Capital Group's decision to expand into more emerging markets and persona research. Kyle pointed out that BlackRock has made adjustments to offer more accurate fixed-income exposures.

They talked about their co-manufactured and custom solutions. Capital Group mentioned partnering with record-keeping organizations to build more conservative target date fund solutions, while BlackRock gave more insight and different variations of life path. Andrew outlined the combination of stocks, real assets, advice, and tactical asset allocation that T. Rowe Price uses to control inflation.

The panelists emphasized how retirement income options are becoming more and more important. Mark and Kyle both underlined the need to concentrate on retirement income and look at measures to make sure participants don't run out of money when they eventually retire. The discussion also touched on the long-term performance of their funds, pointing out the various variables that affect it, such as market concentration and the level of fixed-income holdings. Mark went on to discuss the differences between growth and income strategies and how different target date vintages might provide different outcomes depending on the state of the market.

When asked about the main worries of employers, the speakers mentioned that glide paths, outcomes, pricing, and performance are typically at the top of the list. The emphasis was placed on participant outcomes because maintaining retirees' standard of living is just as important as performance.

If you want a more in-depth view into the world of Target Date Funds and to learn more about how they can play a key role in your retirement planning, tune into the full video. This panel covered a lot of ground, from glide paths to managing inflation, and you don't want to miss these insights.

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