As part of the automatic enrollment provision of the Pension Protection Act of 2006, the DoL has been directed to set default investment option for 401(k) plan participants who do not make their own choices. The WSJ
reports that most fund observers expect target-date funds to be on the final list of qualified default investment options. The result of this has been the rapid proliferation of target date funds, with at least 25 launched so far this year, according to Morningstar. Those planning to launch target date funds this year are UBS AG, Pacific Investment Management (Pimco) and Nationwide Fund Advisors.
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