401(k) plan participants have 30 days to amend their lawsuit against Stanley Black & Decker claiming ERISA violations regarding a BlackRock target-date series.
A lawsuit accused Wintrust Financial and 401(k) plan fiduciaries of violating ERISA by offering a BlackRock target-date series that it alleged performed poorly.
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Generally, 2020 target-date funds were conservative enough to cushion the market’s blow early in the year. Illustration by Glenn Harvey Text size
For anyone who had been contemplating retiring in 2020, the first quarter couldn’t have been easy. Stocks fell 34% in 23 days as the pandemic took hold and the economy quickly weakened. These stomach-churning moments are when investors make some of their worst mistakes the kinds of mistakes that automatic investment products, like target-date funds, try to circumvent. In 2020, they largely did.
As of Dec. 31, 2020, the average return of a vintage 2020 target-date fund was 10.8%, one percentage point lower than the 11.7% return for a balanced fund with a 50% to 70% equity allocation, according to data from Morningstar Direct. In the first quarter, 2020 target-date funds overall fell 10%, on average.