Alert May 26, 2009

SEC and DOL to Hold Joint Hearing on Target Date Funds

The SEC and DOL will be holding a joint public hearing on June 18, 2009 examining target date funds, life cycle funds and other similar investments products (collectively, “TDFs”).  TDFs typically are mutual funds that allocate their investments among various asset classes and adjust the allocation toward more conservative investments as a specified “target date” approaches.  The SEC and DOL are accepting requests to participate by presenting testimony and answering questions at the hearing.  Discussion topics at the joint hearing will include issues related to how TDF managers determine asset allocations and changes to asset allocations over time; how they select and monitor underlying investments; how the foregoing and related risks are disclosed to investors; and approaches to comparing and evaluating TDFs.  Additional information on making a request to participate in the public hearing, which must be submitted by 3:30 p.m., EST, June 5, 2009, is available at http://www.sec.gov/rules/other/2009/ic-28725.pdf.