Morningstar has started work on ratings and in-depth research reports for target-date funds to better serve advisors, investors and others. The reports will be rolled out later this year, the company announced at the 2009 Morningstar Investment Conference in Chicago.
“Target-date funds have come under scrutiny in recent months. Disparity in the performance in 2008 among funds with the same target-date caused many to second guess the funds’ investment policies and strategies, leading to the joint hearing before the SEC and the Department of Labor [in June],” says John Rekenthaler, vice president of research for Morningstar.
“Morningstar’s upcoming research reports and ratings will make target-date funds more transparent, and will help investors make meaningful comparisons and informed decisions when evaluating a target-date fund,” he explains.