More than half of the participants in 401(k) retirement plans at Vanguard now hold a target date fund, giving them a disciplined approach to taking risks with their investments that automatically grows more conservative as they age and prevents extremes in asset allocations.
According to Vanguard Research, financial advisors can add up to about three percent in net returns for their clients using Vanguard Advisor's AlphaTM, a wealth management framework that focuses on portfolio construction, behavioral coaching, asset location, and other relationship oriented services.
Vanguard has announced new investment advisory arrangements for Vanguard Windsor II Fund, increasing the percentage of the fund's assets for which Hotchkis & Wiley Capital Management, LLC is responsible.
Vanguard has reported that the average nominal account balances for 401(k) plan participants reached a record high of $101,650 at year-end 2013, 18% higher than the previous year and the highest recorded since Vanguard began tracking the figure in 1999.
Vanguard's Advisor's Alpha framework was created in 2001, and outlines how advisors can add value through relationship oriented services. Implementing this framework can add about three percent in net returns for clients.
This paper takes up the performance evaluation challenge of flexible asset allocation funds, or go anywhere funds, by testing 5 distinct evaluation techniques over the period January 1998 through June 2013.