From L.A. Times: The appeal of target-date mutual funds is their exposure to
so many parts of the financial markets. It’s also what caused target funds to
lose money in the second quarter. The
average target fund lost 2.8% from April to June, dragged down by the nearly 7%
loss in their non-U.S. stock holdings, according to Ibbotson Associates. That
was a reversal from their 9% rally in the first quarter.
Target funds are now down over the past 12 months, with the
average fund off 0.5%. That’s also driven by non-U.S. equities, which have slid
more than 13% in that period. The poor performance didn’t hurt asset flows, however.
A “very strong” $13.9 billion poured into the sector, pushing total assets to
$431.5 billion, according to Ibbotson…
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