Consulting shop Callan Associates is making its Callan Target Date Index publicly available to defined contribution plan sponsors, target date managers and plan participants via an interactive tool, which evaluates how their target date fund performed against all others in the glidepath universe.
Currently, the Callan Target Date Index tracks the glidepaths of 43 target date funds
Features of the Callan Target Date Index include:
• At-a-glance snapshot of the Index and target date fund peer group's performance across the full glidepath;
• Drill down of performance within each of the target date vintage years;
• View the underlying asset class composition and glidepath allocation at a macro level and micro level;
• Equity roll down analysis chart that shows the percentage of equity allocation of the Index across the full asset allocation glidepath, along with the range of equity allocations available.
“Plan sponsors can't pick and choose the target date vintages they want to use, they have to offer target date funds as a complete package, so it's important for them to understand how target date funds stack in total,” stated Lori Lucas, defined contribution practice leader at Callan.
“By providing this at-a-glance view, plan sponsors can understand how the complete glidepath compares to all other available glidepaths.”
