All of the attention around reforming target-date fund disclosure will not do much for investors writes Chuck Jaffe. Meanwhile, the DoL is reportedly extending its comment period target-date fund disclosures through July 9.

The DoL told the public about the extended comment period on Thursday.

The issue for Jaffe is that few investors likely pick their fund because of its glide path or because their fund is a "to" or a "through."

Jaffe also points out that Morningstar has developed "almost 50 different categories of target-date and life-cycle funds" mostly based on the target year of the fund.

The SEC has proposed changes that would would require funds to include a description of its allocation at the target retirement age in its name and all advertising.

"For the average investor, however, it's poppycock. They can't tell the difference," writes Jaffe. "A disclosure in the fund’s name says nothing about where the fund is positioned years ahead of the target date, or how it will get from now until then."  

Edited by: Sean Hanna, Editor in Chief


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