Target date funds hold their own, study finds; Results show them living up to 'their promise to investors'.(News)

Investment News, May, 2006

Byline: Rosalyn Retkwa NEW YORK - Six of the largest target date retirement fund groups are performing well enough to get a tentative thumbs up, according to a study scheduled for a late June release. In a relatively new market, this may be the first study of its kind. Some of the fund sponsors have been in the market for a decade or more, but only in the past three years have target date funds come into vogue as a popular investment option for 401(k) plan participants.

Since the end of 2002, assets under management in this category have registered a more than fourfold increase, rising to $77.94 billion as of February, from $14.51 billion, according to Financial Research Corp. of Boston. "There was a specific point where we saw an...

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