Wednesday, February 4, 2009

Provocative quote about target date fund (TDF) advisers

Are target date fund advisers swayed by a conflict of interest?

On p. 41 of CFA Magazine (Jan./Feb. 2009), Mark Ruloff, director of asset allocation for Watson Wyatt Investment Consulting, says, "Advisers...are implementing the glidepath. They might have a bias toward keeping higher equity allocations longer because it helps their own fees.... There are legitimate reasons for advisers to arrive at different glide paths, but there's the appearance of a conflict of interest."

What do you think?



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Susan B. Weiner, CFA
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Copyright 2009 by Susan B. Weiner All rights reserved

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