New 401k Target Date Tool to Calm Fiduciary Concerns

Increasingly sophisticated 401(k) target date fund comparison tools.

Increasingly sophisticated 401(k) target date fund comparison tools.

Which target date fund is “the best,” at least for a particular 401(k) plan’s lineup? It’s an increasingly important question in light of the DOL’s fiduciary rule.

John Hancock wants to help.

Its Retirement Plan Services division announced the JH Target Date PathFinder comparison tool on Tuesday, “designed to assist advisors servicing the 401(k) market to compare and analyze the target date suites offered on the JH Signature platform.

“The challenge associated with selecting a target date suite has increased significantly in recent years, as the number of products, and the differences between them, have grown,” Patrick Murphy, president, of John Hancock Retirement Plan Services, said in a statement.

He noted the nine suites from a range of investment managers John Hancock offers which, in addition to their own, including American Funds, T. Rowe Price, Vanguard, BlackRock, American Century and JP Morgan.

“John Hancock record keeping costs are completely independent of the investments selected, ensuring that the selection of a particular suite is driven by how well its design and risk/return characteristics align with the needs of plan participants,” Murphy added. “We wanted to provide advisors with an interactive tool to assist with this analysis, particularly in light of the recent expansion of our target date lineup.”

JH Target Date PathFinder was designed to support both those who would like assistance navigating through the investment options with the inclusion of interactive questions, and those who quickly want to delve into the data, according to the company.

The new website combines “interactive glide path functionality with quantitative data and a customized Summary Report that documents the evaluation process.”

The report, which was developed to align closely with the Department of Labor’s “Target Date Fund – Tips for ERISA Plan Fiduciaries,” can then be shared with the plan sponsor to support them with their fiduciary duties.

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