ICI Workshop on Enhancing Understanding of Target Retirement Date Funds
On September 23, 2009, the Investment Company Institute hosted a workshop on Enhancing Understanding of Target Retirement Date Funds. The purpose of the Workshop was to discuss, in a roundtable format with a broad range of experts, issues relating to the type and quality of information about target retirement date funds available to both employers and plan participants, and whether and how that disclosure might be improved to enhance understanding of the funds.
You can view the Workshop discussions below by clicking on the links under the respective Workshop Panels.
PROGRAM
Introductory Remarks by Karrie McMillan
General Counsel
Investment Company Institute
How does the employer decision-making process work? What questions do employers ask their consultants and providers? What information is presented to employers as they select target retirement date funds? How do employers monitor target retirement date funds? What information do they receive? Are there any gaps in information or employer understanding in selecting or monitoring funds?
- John Ameriks, Moderator
Principal, Head of Vanguard Investment Counseling & Research Group - Tom Fontaine
Head of AllianceBernstein Defined Contribution Investments - Allison Klausner
Assistant General Counsel (Benefits)
Honeywell International Inc. - Dave Reichart, CFA
Head of Business Development
Principal Funds
What information do target retirement date fund investors get or have available, including disclosure documents, fact sheets, and web materials, and how is it presented? How are target retirement date funds covered in plan educational materials and outreach to employees? What safeguards are in place for the quality of the materials that target retirement date fund investors receive? Are there any gaps in the information? What do we know about investors’ understanding of target retirement date funds?
- Jon W. Breyfogle, Moderator
Partner
Groom Law Group - Lori E. Bostrom
Vice President & Deputy General Counsel
OppenheimerFunds, Inc. - James Sia
Vice President and Director, Defined Contributions
Wellington Management Company - Carol Waddell
Director of Product Development
Vice President, T. Rowe Price Retirement Plan Services, Inc.
PANEL 3: The relationship between automatic enrollment and target retirement date funds
How does the automatic enrollment process work? What information do auto enrollees get about plan default investments, and what is the quality of that information? How many target retirement date fund investors are auto enrollees? What, if anything, do we know about them? Are there any gaps in information or understanding about target retirement date funds as default investments?
- Donald J. Myers, Moderator
Partner
Morgan, Lewis & Bockius LLP - Michael Campbell
CFO
GEICO - Ralph C. Derbyshire
Senior Vice President, Deputy General Counsel
Fidelity Investments - Eric J. Freedman
Chief Investment Officer
CAPTRUST Financial Advisors
Are there additional steps providers can take to enhance understanding of target retirement date funds? Are ICI’s Principles to Enhance Understanding of Target Date Funds on the mark? Will they be used? What else should plans and employers do to assist workers in understanding target retirement date funds? What should the SEC and DOL do? Would changing fund names be helpful or confusing? How do we assure that any reforms apply to all target retirement date products?
- Karrie McMillan, Moderator
General Counsel
Investment Company Institute - Brian Reid
Chief Economist
Investment Company Institute - David Abbey
Managing Counsel and Vice President
T. Rowe Price Associates, Inc. - Chip Castille
Head of U.S. Defined Contribution Product Development
Managing Director
Barclays - Anne Lester
Senior Portfolio Manager and Managing Director
J.P. Morgan Asset Management - John Rekenthaler, CFA
Vice President, Research
Morningstar, Inc.
*For other information on target retirement date funds, go to the Target Retirement Date Funds Resource Center.
