Controversy
The funds are not without their critics, who point to the unexpected volatility of some near-dated target-date funds in the financial crisis of 2007–2008, suggesting they were not as conservatively positioned as their name would imply. In response to this, the SEC and DoL hosted a joint hearing on Examining Target Date Funds in June 2009, which found that while target-date funds were generally a welcome innovation, disclosure had to be improved to ensure investors were fully aware of a target-date fund glidepath, which may differ from manager to manager. The rules on disclosures for target-date funds were published by the SEC in 2010.
Read more about this topic: Target Date Fund
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