Letter to SEC: Retirement-Fund Investors Need More Details
Target-date funds should use graphics and data to better explain their investments.
On Friday, several independent divisions of Morningstar, Inc. filed a comment letter with the Securities and Exchange Commission urging the regulator to require target-date series to provide more details on how the investments are managed and structured.
Target-date funds are quickly becoming Americans' primary--if not only--retirement-savings tool, so it's critical that investors understand how these dynamic funds are run. Also, plan sponsors, researchers, and fiduciaries need more data to evaluate target-date series side by side. Morningstar's specific suggestions for how to improve the funds' disclosure follows in the text of the letter.