Conservative financial commentator and George W. Bush Institute Executive Director James Glassman said it is important that risk disclosures go beyond descriptions of asset allocation. As an example, he said providing a percentage of bonds in a fund could be deceptive in terms of risk because some bonds are very risky.
Another committee member, AFL-CIO Associate General Counsel Damon Silvers, said target-date fund intermediaries need more structured disclosure than they have in constructing what are often default investments for retirement fund participants.
Over 70 percent of American employers offer target date funds as their default investment option for company-sponsored defined contribution plans. Assets in the funds grew 29 percent last year to near $485 billion. The funds are the fastest growing investment vehicle for small investors.