Where can an investor find information on the performance of target date funds?
Any target date fund that is a mutual fund registered with the SEC must provide performance information both in its summary prospectus and statutory prospectus, as specified in SEC rules. The required information includes, among other things, a bar chart showing the fund’s annual total returns for each of the last 10 calendar years (or for the period that the fund has existed if less than 10 years) and information on the fund’s highest and lowest quarterly return during the period covered by the bar chart. The SEC regulates the manner in which funds calculate returns. Mutual funds also are required to provide, either in the statement of additional information or annual shareholder reports, a line graph comparing the initial and subsequent account values at the end of each of the most recently completed 10 fiscal years, and the fund’s average annual total returns for the most recent one, five, and 10 years. Typically, funds include this information in their annual shareholder reports. W
