Fund shareholders are not being told enough about the risks embedded in their target-date mutual funds. Or at least that is the implication made by reporter Sam Mamudi in the Wednesday WSJ Fund Track
column. Mamudi is reporting on new regs proposed by the SEC last week regarding disclosures by target date funds.
The article relies on analysts to bolster its take. Those analysts include: Lynette DeWitt
, director of research Financial Research Corp.
(FRC); Dan Wiener
who publishes a newsletter on Vanguard; and Laura Lutton
, editorial director at Morningstar
Inc.'s fund-research group.
DeWitt would reportedly like to see the funds asset allocation at maturity and its asset allocation made explicit. Wiener, on the other hand, would like to see how the losses of a fund during its worst period. "Forget 'alpha' 'beta' and 'standard deviation'óno one understands that stuff," Wiener told the paper.
Sean Hanna, Editor in Chief
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