Plan sponsors may think they are doing the right thing by including target-date funds as an option in their 401(k) plan but nominal bonds don’t do well when inflation and interest rates go up.

Jake Tshudy, director of defined contribution investment strategies at SEI Institutional, believes that any TDF included in a DC plan needs to find a way to hedge against the risks posed by nominal bond funds in an inflationary environment.

Register or login for access to this item and much more

All Employee Benefit Adviser content is archived after seven days.

Community members receive:
  • All recent and archived articles
  • Conference offers and updates
  • A full menu of enewsletter options
  • Web seminars, white papers, ebooks

Don't have an account? Register for Free Unlimited Access