The Callan DC Index™
Performance, asset allocation, and cash flows of over 90 large defined contribution plans representing approximately $150 billion in assets are tracked in the Callan DC Index™.
DC Index Off to a Slow Start
In a tumultuous first quarter, the Callan DC Index™ earned just 0.38%. The Index lagged the Age 45 Target Date Fund, which gained nearly 1%. Over the past three years the Index has performed in line with the Age 45 Target Date Fund; however, since inception, it has trailed with just 5.09% annually versus the Age 45 Target Date Fund's 5.70% annual return.
The Age 45 Target Date Fund is a composite representing the target date fund vintage that a 45-year-old participant (the approximate age of the typical DC participant) would have held in any given year. Currently that is the 2035 target date vintage. Further, the Age 45 Target Date Fund consists of only institutional share class managers. Callan believes that eliminating retail share classes from the Age 45 Target Date Fund benchmark is consistent with institutional management of large DC plans.