RPAG | Industry Trends and Technology News

The Future of TDFs | RPAG’s Revamped Analyzer

Written by RPAG | Oct 3, 2024 9:46:27 PM

At the 2024 RPAG National Conference, Directors of Investment Management,  Matthew Giovinazzo and Kellen Foley, unveiled the all-new, completely revamped Target Date Fund (TDF) Analyzer. This upgraded tool is designed to enhance advisors’ ability to evaluate TDFs and ensure better alignment with plan demographics. With a fresh user interface, improved features, and deeper analytics, the TDF Analyzer is set to revolutionize how advisors approach TDF suitability and analysis.

A Journey Through Time: From TDF Analyzer 1.0 to Today

Kellen and Matthew took the audience on a nostalgic trip, reflecting on the original launch of the TDF Analyzer in 2011. Over the past decade, the TDF Analyzer has evolved significantly, thanks to ongoing advisor feedback and industry developments. The latest version is not just a redesign but a complete overhaul, addressing the changing needs of plan sponsors and participants while incorporating modern technology and enhanced capabilities.

Why TDF Suitability Matters More Than Ever

Target Date Funds are a popular investment vehicle in retirement plans, but many plans still focus on performance and fees rather than suitability. Matthew and Kellen emphasized that TDF suitability is crucial for aligning a fund’s Glide Path with the demographics of each plan. According to RPAG’s recent summits, advisors overwhelmingly agree that suitability is the most important factor for selecting TDFs. With the new TDF Analyzer, advisors can dive deeper into plan data to make informed decisions that improve participant outcomes.

What’s New in the Revamped TDF Analyzer?

The new TDF Analyzer offers a sleek user interface (UI) that is not only visually appealing but also highly functional. Here are some key improvements:

  • Real-Time Data Adjustments: Advisors can adjust inputs such as savings rates, risk aversion, and plan demographics and see real-time updates on charts and data.
  • Granular Data for Deeper Analysis: The new tool provides more detailed data, allowing advisors to compare TDF series more effectively.
  • Modern Output Reports: The enhanced output reports are visually engaging and designed to facilitate easier discussions with plan sponsors, offering both summary views for quick overviews and in-depth analysis for longer discussions.
Enhanced Risk and Return Snapshot

One of the most significant improvements to the TDF Analyzer is the introduction of the Risk and Return Snapshot. This feature enables advisors to compare TDFs more easily by presenting upside and downside metrics, such as up-capture, down-capture, and standard deviation. It simplifies complex discussions with clients, making it easier to explain trade-offs between risk and return.

Misfit Risk Analysis: A Game Changer

The new Misfit Risk Analysis is another standout feature of the revamped TDF Analyzer. It allows advisors to quantify the percentage of participants whose savings rates and other characteristics don't align with the chosen TDF Glide Path. With the ability to upload participant data (such as age, account balance, and salary), advisors can now deliver more personalized and accurate recommendations for their clients.

The Future of TDF Analysis is Here

Matthew Giovinazzo and Kellen Foley’s unveiling of the new TDF Analyzer marks an exciting chapter in RPAG’s commitment to innovation. With improved features, better usability, and deeper insights, this tool is poised to help advisors make more informed decisions and deliver better outcomes for their clients. Advisors can look forward to using the TDF Analyzer by the end of the quarter, with manual reports available for immediate use.

View the presentation here!

________________________________________

Looking for more information?

Contact the RPAG Support Team at support@rpag.com to learn more about RPAG and get help with our platform, suite of services, next-gen technology, or anything else!

Not an RPAG Member?