Tools

The Callan DC Index™

Lori Lucas
Executive Vice President and
DC Practice Leader
lucas@callan.com

 

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The Callan Database

The Callan Database
By the Numbers

Callan's Approach to
Performance Measurement

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™.

Target Date Funds Beat the DC Index

Although the Index rose smartly for the quarter—returning 1.9%—target date funds still managed to marginally outpace the typical DC investor, gaining 2.02%. Since inception, the DC Index has trailed the Age 45 Target Date Fund by 70 basis points annually, averaging a 5.15% 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.

2ND QUARTER2016