Watch as Matt dives into the unique (and abysmal) markets in 2022 and the related reversal of past long-term TDF trends.
Matt Giovinazzo, CFA
Director, Investment Management
Takeaways
01:25
Intl. outpaced US in 2022, but not nearly enough to make up for the ~8% annualized US advantage over the 5-year. Due to this large disparity, US/intl. weighting is the biggest driver of TDF disparities today.
06:07
Series that utilize stable value as a bond surrogate significantly outperformed in 2022, enough to jump to the top of the peer group for longer-term periods.
10:44
Real estate series significantly lagged in 2022, enough to suffer over the 5-year period.
Hot Tip
As we've seen, reversions to the mean make TDF performance very cyclical. Selecting TDFs primarily based on performance (even intermediate/5-year performance) can lead to a vicious circle of buying high and selling low. The assets classes that fueled growth in the past can easily become headwinds in the future.
