"Special Report: Fidelity puts 6 million savers on risky path to retirement"
https://www.reuters.com/article/us-fund ... SKBN1GH1SI
BOSTON (Reuters) - For three years, the mutual funds in Fidelity’s flagship retirement franchise have outperformed at least 85 percent of their competitors, reversing a decade-long trend of subpar performance.
Since a strategy overhaul that took full effect in 2014, Fidelity has substantially increased exposure to stocks, including those from volatile emerging markets. The firm also scrapped a long-held belief of sticking to pre-set allocations of stocks, bonds and other assets in target-date funds.
Instead, Fidelity portfolio managers now try to time market shifts, for instance by moving billions of dollars out of money-losing commodities bets and into Chinese stocks and U.S. tech shares, regulatory filings show.
Plan sponsors dumping Freedom Funds more recently include a host of college retirement systems that shifted money in 2017 to target-date funds offered by Vanguard, according to announcements by the plans.
Today, many target-date fund managers have turned to riskier investments to boost returns, and Fidelity has gone further than its peers, said Ron Surz, president of research firm Target Date Solutions.
“These funds with high concentrations in stocks are a time bomb,” Surz said.