Vanguard Group Inc. is merging its institutional target-date funds into its Target Retirement Funds family, which it expects will result in lowering the funds’ expense ratios to 0.08%.
The average expense ratio of TRF funds currently is 0.12%, according to the company’s website, which says the industry average expense ratio for comparable target-date funds is 0.55%.
In addition to lowering expense ratios, Vanguard said the move will lower its minimum investment requirement for the Vanguard Target Retirement Trust II program to $100 million from $250 million. In addition, it said it will launch a Vanguard Target Retirement Income and Growth Trust for each of its Target Retirement Trust programs. The new trust’s higher (50%) equity allocation in retirement is intended for participants whose wealth, risk tolerance, and/or additional sources of income allow for higher discretionary spending in retirement, the company said in a release.
The TRF mergers are expected to be completed in February 2022. The merged funds will retain the same investment strategy, asset allocations and glide path.
Blue Anchor Capital Management and Pickett also purchased “highly aggressive and volatile” securities, according to the order.
Reshuffle provides strong indication of where the regulator's priorities now lie.
Goldman Sachs Asset Management report reveals sharpened focus on annuities.
Ahead of Father's Day, InvestmentNews speaks with Andrew Crowell.
Cerulli research finds nearly two-thirds of active retirement plan participants are unadvised, opening a potential engagement opportunity.
Barely a decade old, registered index-linked annuities have quickly surged in popularity, thanks to their unique blend of protection and growth potential—an appealing option for investors looking to chart a steadier course through today’s choppy market waters, says Myles Lambert, Brighthouse Financial.
How intelliflo aims to solve advisors' top tech headaches—without sacrificing the personal touch clients crave
