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Above and beyond 50011/7/2023 ![]() The index funds have an enduring edge versus most actively managed equity funds thanks to their low fees and broad market-cap-weighted exposure that has proved difficult to beat consistently over the long term. About 95% of the series' assets reside in Morningstar Medalist funds, most of which are rated Gold, indicating our high conviction in the underlying funds. This series, which was added to coverage in December 2020, tactfully allocates the equity portion of the glide path to low-cost broad market Vanguard index funds and uses its stellar in-house active bond funds for fixed-income exposure. ![]() But for investors who are willing to endure a potentially bumpy ride, we believe there is considerable upside to owning this series over the long-term thanks to its combination of forward-thinking managers and skilled underlying managers. This will lead to more-volatile returns versus peers, particularly in periods like the first quarter of 2020. As a result, it will have the most equity-heavy glide path throughout the accumulation phase and at retirement relative to any other target-date fund that we cover. In 2020, management announced its intention to increase the amount of equity throughout the glide path over the next two years to better combat the risk of investors outliving their assets in retirement. These were both upgraded to Gold owing to higher conviction in the series' process, which was upgraded to High from Above Average. Rowe Price Retirement and MassMutual Select T. Series that newly qualify for a Morningstar Analyst Rating of Gold include: Our conviction in the series' management team and process hasn't changed, but under the new methodology it is tougher to earn our highest Analyst Rating given the low dispersion of returns among target-date funds and higher degrees of confidence in the teams and approaches at other series. Only one series, TIAA-CREF Lifecycle, was downgraded, and this was due to our updated methodology.
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