BrightScope launches target date benchmark tool

BrightScope, a San Diego, Calif.-based 401(k) data and analytics firm, announced on Monday a partnership with Target Date Analytics LLC to launch the BrightScope On Target Index. Effective today, plan sponsors and advisers who sign up to use BrightScope’s online tools to compare their plans’ performance to others will now also be able to benchmark the target date funds within their plans. BrightScope, which rates 401(k) plans, went live in January and now has more than 16,500 plans in its database. Adding a target date fund index for subscribers makes sense given how prevalent these fund are in 401(k) plans, said Ryan Alfred, co-founder and president of BrightScope. “The idea here is that we can license the index for anyone who wants to use it to benchmark their funds,” Mr. Alfred said. The company has received interest in the tool from fund managers, advisers and 401(k) plan sponsors, Mr. Alfred added.—Jessica Toonkel Marquez