We continue to remain concerned about the risk-mitigation process employed during Transamerica ClearTrack’s Dynamic Rebalancing Period, which is applied to funds five years prior and five years after the retirement date. In highly volatile periods, the risk-mitigation process kicks in, systematically reducing risk to try to keep these portfolios’ losses from its high point to less than 15%. Starting in 2020, the two funds with this risk-mitigation feature are the 2020 and 2025 funds (previously the 2015 and 2020 funds).
Will TCOTX outperform in future?
Get our overall rating based on a fundamental assessment of the pillars below.
The Process Pillar is our assessment of how sensible, clearly defined, and repeatable TCOTX’s performance objective and investment process is for both security selection and portfolio construction.
The People Pillar is our evaluation of the TCOTX management team’s experience and ability. We find that high-quality management teams deliver superior performance relative to their benchmarks and/or peers.
The Parent Pillar is our rating of TCOTX’s parent organization’s priorities and whether they’re in line with investors’ interests.