New research shows widespread target-date fund misuse and misperceptions by defined contribution plan participants
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These findings reveal that many participants do not have sufficient understanding of target-date funds or how to use them. Financial advisors who understand the strengths, weaknesses and appropriateness of target-date funds have a largely untapped opportunity to add value for their clients.
Janus recently conducted two in-depth research projects around target-date funds, and is making the findings available to financial advisors who wish to learn more about:
- How participants may be viewing and using target-date funds
- Information sources that participants rely on most to research target-date funds
- The role financial advisors play in providing advice about target-date funds
To learn more about the findings, download a copy of "The Burden of Good Intentions: Opportunities and Challenges for Target-Date Funds", a paper summarizing the results of Janus' target-date fund research. For more information about Janus' thought papers and market perspectives, visit janus.com.
Survey Methodologies
In October 2008, Janus Capital Group engaged Brightwork Partners LLC, an independent provider of investor research, to conduct a proprietary online survey of participants in 401(k) plans. The 503 respondents were employed full- or part-time at for-profit organizations; were contributing to their employer-sponsored 401(k) plan or had a balance of $1,000 or more; and held one or more target-date fund(s) in their account.
Janus developed a series of proprietary questions in conjunction with PLANSPONSOR designed to provide insight into plan sponsors’ target-date fund selection, construction, monitoring, and satisfaction. These questions were included in PLANSPONSOR’s annual survey of DC plan sponsors, conducted from July to September 2008. PLANSPONSOR e-mailed approximately 25,000 questionnaires to sponsors of DC plans that were welldiversified by size (less than $5 million to more than $200 million in assets); 6,123 usable responses were received by September 2008.
Please consider the charges, risks, expenses and investment objectives carefully before investing or recommending to clients for investment. For a prospectus containing this and other information, please call Janus at 877-33JANUS or download the file from janus.com/info. Read it carefully before you or your clients invest or send money.
Past performance is no guarantee of future results.
Opinions are as of April 2009 and are subject to change at any time due to changes in market, economic, legal or regulatory conditions. The comments should not be construed as advice but as an illustration of broader themes.
In preparing this document, Janus has relied upon and assumed, without independent verification, the accuracy and completeness of all information available from public sources.
Janus makes no representation as to whether any illustration/example mentioned in this document is now or was ever held in any Janus portfolio. Illustrations are only for the limited purpose of analyzing general market or economic conditions. They are not recommendations to buy or sell a security, or an indication of the authors’ holdings.
This document is not intended to be an offer or solicitation, or the basis for any contract to purchase or sell any security or other instrument, or for Janus Distributors LLC to enter into or arrange any type of transaction as a consequence of any information contained herein. This document is not an advertisement and is not intended for public use or distribution.
Janus Capital Group Inc. is a global asset manager offering individual investors and institutional clients complementary asset management disciplines. Janus Capital Management LLC serves as the investment adviser.
Janus Capital Group Institutional is the institutional business arm of Janus Capital Group; Janus Capital Management, LLC serves as investment adviser.
Janus Distributors LLC (06/09)
FOR FINANCIAL PROFESSIONAL USE ONLY / NOT FOR PUBLIC VIEWING OR DISTRIBUTION
C-0509-268 03-30-10
In October 2008, Janus Capital Group engaged Brightwork Partners LLC, an independent provider of investor research, to conduct a proprietary online survey of participants in 401(k) plans. The 503 respondents were employed full- or part-time at for-profit organizations; were contributing to their employer-sponsored 401(k) plan or had a balance of $1,000 or more; and held one or more target-date fund(s) in their account.
Janus developed a series of proprietary questions in conjunction with PLANSPONSOR designed to provide insight into plan sponsors’ target-date fund selection, construction, monitoring, and satisfaction. These questions were included in PLANSPONSOR’s annual survey of DC plan sponsors, conducted from July to September 2008. PLANSPONSOR e-mailed approximately 25,000 questionnaires to sponsors of DC plans that were welldiversified by size (less than $5 million to more than $200 million in assets); 6,123 usable responses were received by September 2008.
Please consider the charges, risks, expenses and investment objectives carefully before investing or recommending to clients for investment. For a prospectus containing this and other information, please call Janus at 877-33JANUS or download the file from janus.com/info. Read it carefully before you or your clients invest or send money.
Past performance is no guarantee of future results.
Opinions are as of April 2009 and are subject to change at any time due to changes in market, economic, legal or regulatory conditions. The comments should not be construed as advice but as an illustration of broader themes.
In preparing this document, Janus has relied upon and assumed, without independent verification, the accuracy and completeness of all information available from public sources.
Janus makes no representation as to whether any illustration/example mentioned in this document is now or was ever held in any Janus portfolio. Illustrations are only for the limited purpose of analyzing general market or economic conditions. They are not recommendations to buy or sell a security, or an indication of the authors’ holdings.
This document is not intended to be an offer or solicitation, or the basis for any contract to purchase or sell any security or other instrument, or for Janus Distributors LLC to enter into or arrange any type of transaction as a consequence of any information contained herein. This document is not an advertisement and is not intended for public use or distribution.
Janus Capital Group Inc. is a global asset manager offering individual investors and institutional clients complementary asset management disciplines. Janus Capital Management LLC serves as the investment adviser.
Janus Capital Group Institutional is the institutional business arm of Janus Capital Group; Janus Capital Management, LLC serves as investment adviser.
Janus Distributors LLC (06/09)
FOR FINANCIAL PROFESSIONAL USE ONLY / NOT FOR PUBLIC VIEWING OR DISTRIBUTION
C-0509-268 03-30-10
