SEC eyes target-date funds 

Target-date funds are the newest product in the Securities and Exchange Commission’s crosshairs. Chairman Mary Schapiro recently announced the agency will begin examining the way the products are marketed to prevent them from confusing consumers, the Wall Street Journal reports.

The SEC will look into funds that contain a target retirement date in their names, the Journal writes.

"In the year ahead, we are going to confront the issue of the potential for target date fund names to confuse investors, or lull them into a false sense of security," Schapiro said. "I have asked the staff to prepare a rule proposal to provide additional information to investors when a fund includes a date in its name."

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• • 3/17/2010 1:10:15 PM
  • Jim Pauli
  • Target Date funds
  • This isn't an article - it's maybe the first paragraph of an article. There has already been congressional scrutiny of target date funds due to their performance in 2008. Perhaps there could be follow up information on that, or ways that companies offering target date funds are making themselves more 'responsible' with regard to risk tolerences, fund fees, etc?
• • 3/17/2010 3:31:34 PM
  • Patrick Durden
  • Target Date Funds SEC
  • Now if my memory serves me correctly, it was the federal government who came out with the idea of target date funds and they also offer them to federal employees in the Thrift Plan!