Blackrock TDFs are a huge target

At least 11 companies, including Booz Allen Hamilton Inc., Citigroup Inc., and Microsoft Corp., have been named in a series of lawsuits going after a target-date index suite that is managed by BlackRock Inc.

A big part of the lawsuits are targeting BlackRock’s index suite is the low-cost “to-retirement” glide path the company’s money managers have used to balance underlying investments.

While to-retirement TDFs stop trading once the target retirement date has been reached, “through retirement” funds assume that 401(k) plan participants will keep their savings in the plan post-retirement. T

With all this litigation on an index target date fund, we need some guidance from the Department of Labor. Otherwise, we will get more lawsuits.

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