Regulators in Washington plan to tackle target-date funds, the highly diversified mutual funds that have come under fire amid heavy losses in the market meltdown.

The Securities and Exchange Commission and Department of Labor said Tuesday they will hold a joint one-day hearing on June 18 in Washington to explore issues related to target-date funds, also known as lifecycle funds, and other similar investment options.

The announcement comes a week after Mary Schapiro, SEC chairman, called the results of target-date funds “troubling” and said her agency is “closely reviewing” the funds’ disclosure about their asset allocations, which are known as "glide paths."

“As target date funds and similar investment options become increasingly popular, it is important that all investors, including 401(k) plan sponsors and participants, can adequately evaluate these investment options and safeguard their interests,” the SEC and DOL said in a joint statement.

Target-date funds are mutual funds that can contain a mix of stocks, bonds and cash, and offer different levels of risk that are theoretically appropriate for people of different ages. These funds typically become more conservative as the target date, such as college enrollment or retirement, nears.

However, these funds, which are targeted at less-sophisticated investors, have been criticized for investing more riskily than they were supposed to for each age profile.

For example, Schapiro said last week that 31 target funds with a 2010 retirement date suffered an average loss of 25% in 2008.

The hearing in Washington will center on issues facing target-date fund investors, portfolio composition, risk and disclosure. The SEC and DOL said the hearing will likely include testimony from investor organizations, academia, plan sponsors, plan participants and the financial services industry.

A spokesperson representing the Investment Company Institute, the mutual fund industry’s trade group, said the group is “considering participating.”

The meeting could be a prelude to more changes in store for target-date funds, as last week Schapiro said the SEC is looking into a number of reforms.

"Among other issues, we will consider whether the use of a particular target date in a fund's name may be misleading or confusing to investors and whether there are additional controls the SEC should impose to govern the use of a target date in a fund's name," Schapiro said.