Evaluating Target Date Funds: 5 Things Every Plan Sponsor Should Know About Their Target Date Funds


Target date funds are quickly becoming the dominant investment option within many defined contribution retirement plans. Regulators have taken notice with the Department of Labor (DOL) contemplating new disclosure requirements for plans offering target date funds.

In order for a plan sponsor to meet their fiduciary obligations to prudently select and monitor their target date funds, a thorough analysis is necessary because of the underlying complexity of these products and their unique structure relative to the traditional "core" investment options that defined contribution sponsors are used to evaluating.

In this program, Scott Cameron of Multnomah Group will present a framework for a sound fiduciary evaluation of a target date series. The presentation will include a discussion of the following topics:

  • Background on target date funds as Qualified Default Investment Alternatives (QDIA)
  • Alternative structures for target date funds
  • Key principles for plan sponsors in evaluating target date fund providers

About Multnomah Group

The Multnomah Group is a leading provider of fee-only retirement plan and investment consulting services to employer retirement plans in the western United States, providing investment consulting, vendor search, benchmarking, and design services.

scott-presenterPresenter: Scott Cameron, CFA

Scott is the Chief Investment Officer for the Multnomah Group and a Founding Principal of the firm. In that role, Scott leads Multnomah Group’s Investment Committee, is responsible for the development of the firm’s investment research methodology, and conducts investment manager due diligence. Scott also consults with plan sponsors on investment menu design, investment manager selection, fiduciary governance, and vendor fees/services.

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