RT Journal Article
SR Electronic
T1 Practical Applications of Balancing on the Life Cycle: <em>Target-Date Funds Need Better Diversification</em>
JF Practical Applications
FD Institutional Investor Journals
SP 1
OP 4
DO 10.3905/pa.2017.5.1.223
VO 5
IS 1
A1 Jusvin Dhillon
A1 Antti Ilmanen
A1 John Liew
A1 Barbara J. Mack
YR 2017
UL https://pm-research.com/content/5/1/1.3.abstract
AB Balancing on the Life Cycle: Target-Date Funds Need Better Diversification Jusvin Dhillon Antti Ilmanen John Liew In Balancing on the Life Cycle: Target-Date Funds Need Better Diversification , published in the Summer 2016 issue of The Journal of Portfolio Management , Jusvin Dhillon, Antti Ilmanen and John Liew of AQR Capital Management examine life-cycle funds, which have become an enormous industry in recent years.Such funds offer retail investors a useful option in the quest to save for retirement. However, life-cycle funds do have some drawbacks, and are under-diversified in several key areas. Dhillon and his co-authors evaluate five dimensions of under-diversification and show how to address each issue, resulting in better performance for people who are saving for retirement.TOPICS: Mutual funds/passive investing/indexing, wealth management