Jonathan A. Parker, Antoinette Schoar, and Yang Sun have been honored with the 29th annual Paul A. Samuelson Award by the TIAA Institute for their study, “Retail Financial Innovation and Stock Market Dynamics: The Case of Target Date Funds.” The research analyzes the market impact of Target Date Funds (TDFs), one of the most significant financial innovations widely used by individual retirement savers in America.
The study shows that the rules guiding trades by TDFs as they rebalance have caused substantial changes in how money moves in and out of mutual funds, suggesting these changes are affecting stock returns and might even be reducing volatility in the stock market.
“TIAA has a long history of advocating for secure and dignified retirements,” said Surya Kolluri, head of the TIAA Institute. “This research shows how TDFs can help support long-term retirement goals by appropriately adjusting asset allocations over time and by bringing greater market stability. We’re proud to recognize research that offers these types of best practices for improving retirement outcomes.”
“It’s a unique honor to receive the Samuelson Award. This recognition highlights the real-world impact that academic work has on optimal portfolios – similar to the research Samuelson conducted in 1969 – and underscores the importance of retirement plan design and financial tools,” the authors said.
Named in honor of the Nobel Prize winner and former CREF trustee, the Paul A. Samuelson Award is presented annually by the TIAA Institute to recognize an outstanding research publication designed to increase Americans’ lifelong financial well-being. Winners are chosen by an independent panel of judges, consisting of Institute Fellows and previous award recipients.
The 2024 Samuelson Award panel of distinguished judges include:
- Scott Cederburg, The University of Arizona
- Jonathan Reuter, Boston College
- Sita Nataraj Slavov, George Mason University
- Carly Urban, Montana State University
- Stijn Van Nieuwerburgh, Columbia University
Learn more about the TIAA Paul A. Samuelson Award here.