Social(K) BLOG
March 15, 2019

How Large Target-Dates Fared in a Volatile 2018

By Emile Hallez March 11, 2019

Axa Equitable Life, Natixis, and Wells Fargo had the best-performing U.S. mutual fund target-date series in 2018, according to data from Morningstar.

A volatile market across equity and fixed-income asset classes during the year in some instances favored low-fee target-date funds, particularly index-based series. In some cases, fund firms that have multiple products saw their index-based target-dates outperform their active ones.

However, some active-only managers also ranked among the top performers, as average total returns had more to do with glide path design and asset class exposure, says Jeff Holt, director of multi-asset and alternative strategies in Morningstar’s manager research practice.

“It shows that you have to look beyond active versus passive when evaluating target-date fund performance,” Holt says. Further, because target-date managers have their own glide paths and asset class mixes, “there isn’t really a truly passive target-date series. They all look different.”

On average during 2018, target-date mutual fund and collective investment trust series built primarily with index funds and ETFs outperformed those investing in active funds, according to a recent report from Sway Research.

In 2018, funds in Axa’s 1290 Retirement series on average performed in the top 5% of U.S. target-date mutual funds, according to Morningstar data showing rankings based on average returns across funds and share classes on a non-asset-weighted basis.

Natixis’s Sustainable Future series had the second-highest average performance. During the product’s first full year of operations, its funds, on average, were in the top 7%.

More here.

You Can Invest With Your Values

Retirement plans for long-term growth with the benefit of creating a safe, just, and sustainable world.

Social(k) offers hundreds of investments using Environmental, Social, and Governance, (i.e. ESG screened investments) backed by a plethora of Financial research. Structured into traditional Mutual Funds, Social(k) helps you sleep at night knowing that you’re pursuing the brightest possible future for your retirement and our planet.

Learn more about our Big Green Retirement Plan