1. Target-date funds may become complex due to added holdings. 2. Over 35% of target-date funds now hold over two dozen positions. 3. Collective investment trusts (CITs) dominate, comprising 52% of target-date assets. 4. CITs may lead to higher costs and lower transparency for investors. 5. Private assets in target-date funds could increase risk for investors.
FAQ
Why Bearish?
The shift towards CITs and complex investments may deter investors, affecting MORN’s asset management appeal.
How important is it?
The implications on fund complexity and reduced transparency could impact investor decisions and, consequently, MORN's fund performance.
Why Long Term?
The trend towards higher fees and complexity in target-date funds may lead to sustained investor skepticism over time.