Quantcast
The MFWire
Manage Email Alerts | Sponsorships | About MFWire | Who We Are

Subscribe to MFWire.com's News Alerts [click]

Rating:Reuters Attacks a $224B Fidelity Product Suite Not Rated 0.0 Email Routing List Email & Route  Print Print
Tuesday, March 6, 2018

Reuters Attacks a $224B Fidelity Product Suite

News summary by MFWire's editors

The Boston Behemoth is under fire over a core, $224-billion product suite that generates nearly $1 billion in fees. The criticism underscores the difficult new environment for active asset managers, even the giants.

Yesterday in a special report, Reuters attacked Fidelity's Freedom Funds target-date fund family. On the one hand, Reuters highlights "a decade-long trend of subpar performance" in the Freedom Funds. On the other the news service worries about the Freedom Funds' more recent outperformance as a sign that Fidelity is now taking too much risk in the TDFs. And through it all, Reuters notes, Fidelity's TDF marketshare has slipped (though Fidelity's TDF AUM has still grown as the total size of the TDF market has increased dramatically).

Put in starker, more general terms: take too little risk and risk underperformance and outflows; correct that by taking on more risk, and be accused of being too aggressive and of being inconsistent. Is anyone else thinking of that one Kelly Clarkson song, "You Can't Win"?

The long piece offers tidbits from: Scott Cameron, chief investment officer at 401(k) plan advisor (KPA) shop Multnomah Group; Jeff Holt, analyst with Morningstar; Kendall Storch, a KPA with Longfellow Advisors; and Ron Surz, president of Target Date Solutions. Vin Loporchio, a spokesman with Fidelity, also weighed in.

Performance attracts inflows, as all fundsters know, and that holds true with asset allocation funds like TDFs, too. Yet asset allocation can have a big impact on performance, and what seems like the perfect TDF allocation one day can seem like a terrible one the next.

It's worth remembering, though, that while different TDFs will have varying strategies and results, another important comparison is between a TDF and individual investors' self-directed investment choices. It would be interesting to see how investors in the Freedom Funds and other TDFs compare over the long-term to those who self-direct. 

Edited by: Neil Anderson, Managing Editor


Stay ahead of the news ... Sign up for our email alerts now
CLICK HERE

0.0
 Do You Recommend This Story?



GO TO: MFWire
Return to Top
 News Archives
2024: Q4Q3Q2Q1
2023: Q4Q3Q2Q1
2022: Q4Q3Q2Q1
2021: Q4Q3Q2Q1
2020: Q4Q3Q2Q1
2019: Q4Q3Q2Q1
2018: Q4Q3Q2Q1
2017: Q4Q3Q2Q1
2016: Q4Q3Q2Q1
2015: Q4Q3Q2Q1
2014: Q4Q3Q2Q1
2013: Q4Q3Q2Q1
2012: Q4Q3Q2Q1
2011: Q4Q3Q2Q1
2010: Q4Q3Q2Q1
2009: Q4Q3Q2Q1
2008: Q4Q3Q2Q1
2007: Q4Q3Q2Q1
2006: Q4Q3Q2Q1
2005: Q4Q3Q2Q1
2004: Q4Q3Q2Q1
2003: Q4Q3Q2Q1
2002: Q4Q3Q2Q1
 Subscribe via RSS:
Raw XML
Add to My Yahoo!
follow us in feedly


  1. MFDF webinar - BDC Board Service 101, December 10
  2. WE Boston - Give Back Event, December 10
  3. IMEA Distribution Council webinar - Unlocking Your Competitive Edge: Driving Results Through Net Promoter Excellence, December 10
  4. WE New York - End of Year Celebration, December 11
  5. MFDF webinar - ETF Product Trends: Board Implications, December 11
  6. Nicsa webinar - The Virtues of Corporate Culture, December 11
  7. MFDF webinar - Visually Mapping Board Composition: Skills Matrices in Fund Board Rooms, December 18
  8. IMEA webinar - Driving Equity: The FARE Journey and Its Impact on Financial Services, December 19
  9. MFDF webinar - 2024 Fair Valuation Pricing Survey: Building and Strengthening the Valuation Operating Model, January 7, 2025
  10. MFDF webinar - 15(c) White Paper Webinar Series: Part 2 – Board Processes, January 9, 2025
  11. MFDF webinar - AI and Fund Compliance, January 21, 2025
  12. MFDF In Focus - In Focus: Small Boards' Use of Skills Matrices, January 22, 2025
  13. MFDF 2025 Directors' Institute, January 27 - 29, 2025
  14. FSI OneVoice 2025, January 27 - 29, 2025
  15. 2025 ICI Innovate, February 3 - 5, 2025
  16. MFDF Director Discussion Series - Open Forum, February 10, 2025
  17. MFDF Director Discussion Series - Open Forum, February 11, 2025
  18. MFDF 2025 Fund Governance & Regulatory Insights Conference, March 6 - 7, 2025
  19. MFDF Director Discussion Series - Open Forum, April 2, 2025
  20. Envestnet Elevate 2025, April 9 - 10, 2025
  21. MFDF Director Discussion Series - Open Forum, April 15, 2025
  22. The 36th Sub-Advised Funds Forum, April 29 - 30, 2025
  23. Morningstar Investment Conference 2025, June 25 - 26, 2025
  24. MFDF Director Discussion Series - Open Forum, July 9, 2025




©All rights reserved to InvestmentWires, Inc. 1997-2024
14 Wall Street | 20th Floor | New York, NY 10005 | P: 212-331-8968 | F: 212-331-8998
Privacy Policy :: Terms of Use