Subject: Market Volatility and flexPATH TDF Presentation for Participants
Q1 2020 was an unfortunately remarkable quarter. US equity markets saw a peak to bottom decline of 34%, the largest drop since the Great Recession in 2008. This marked the fastest bear market decline in history at 16 (trading) days. Target date funds helped mitigate losses, particularly for investors approaching retirement with a more conservative allocation. With that said, there was a wide variance in performance amongst different series during this drawdown as usual.
The flexPATH TDFs in your plan, guided by world-class asset allocation by BlackRock, yet again exhibited strong downside protection during this time. We want to help you convey this great news to your employees, reinforcing their confidence in the plan, while educating them on basic investing concepts (stay the course, time in the market instead of timing the market, etc.).