Posts filed under “Mutual Funds”
Missing the Target
You may have missed the WSJ’s takedown on Target-date funds this weekend. Its a must.
The idea of target date funds are a form of auto-pilot that automatically shifts allocations into more bonds less stocks as the investor ages. Target date funds now manage about $550 billion dollars.
The problem with these funds — aside from high fees and higher-costs — is how out of phase its been with the markets for retiring babyboomers. Many of them have found they are selling equities into weakness and buying bonds into a 30 year bull market which is looking kinda old and shaky.
Anyone with a 401k or who uses these funds should definitely give the article a read.
Missing the Target
LIAM PLEVEN and JOE LIGHT
WSJ, June 14, 2013
Yesterday, I referenced Merrill Lynch research that showed only 39% of fund managers beat the S&P500 last year. This morning, the WSJ references Goldman Sachs research — it shows something similar. Their data showed 65% of U.S. large-cap stock funds trailed the benchmark index net of fees. (5 year average = 66%). When they looked…Read More
Here is an astonishing fact brought to my attention from the quant group at Merrill: “In 2012, 39% of managers beat the S&P 500. Value and Core managers achieved 21% and 38% success rates, respectively. 54% of Growth managers outperformed the benchmark.” 38% is an unusual data point — Value did not work, Core…Read More
How fund managers voted on pay (Financial News) This is how 20 of the UK’s biggest fund managers voted on executive pay during early 2012′s “shareholder spring”. It’s no surprise to see firms like the Co-op racking up the ‘no’ votes here, but other serial rebels, such as State Street Global Advisers, have kept a…Read More
The mutual funds and managers to avoid Barry Ritholtz Washington Post, May 4 2012 How are your retirement investments doing these days? For many people, that’s a loaded question. U.S. markets are up more than 100 percent from their 2009 lows, yet many investors are not thrilled by their returns. That’s quite…Read More