Target-date funds still have a place in portfolios: Kaplan

Paul Kaplan, director of research for Morningstar Canada, answers the question, “In this low interest rate environment, don’t target-date funds systematically move investors into a lower return asset class?” Kaplan asserts that target-date funds are a buffer to equity risk and discusses their use as part of a fixed income strategy in portfolio construction. Kaplan spoke at the Morningstar Investment Conference 2013 in Toronto.