Target date funds (TDFs) have been a prominent fixture in many Canadian-sponsored capital accumulation plans, evolving and adapting to the ever-changing needs of plan members. They are a simple solution for plan members who don’t want to make allocation decisions on their own.
In a short period of time, they have gone through several iterations to include more complex asset classes. With members becoming better financially educated and information more readily available, the demand for non-traditional solutions, like TDFs, have become greater. The low interest rate environment has also impacted asset allocation decisions, and as such, TDF managers have responded in-kind by expanding the opportunity set and adjusting their approach.
On October 12th we discussed the evolution of target date funds with Pat Leo, Director of Institutional Business Development at Sun Life Global Investments. To access the slide deck, follow the link: http://bit.ly/2dPgPPc