The idea is straightforward: Target date funds have an asset allocation based on a given retirement date, and the allocation is professionally managed and de-risked as that date approaches.
By putting complex investment decisions in the hands of professionals, target date funds can help investors:
- Feel less stressed about achieving retirement goals
- Increase contribution rates
- Achieve more consistent overall average results than non-target date investors
We take a sophisticated approach to our target date fund solution to help your plan better achieve its unique goals. You get:
- Enhanced diversification and efficiency – via institutional asset classes with individual risk/return properties
- Access to prestigious institutional managers – Our relationships allow for changes without participant disruption, time lags or blackout periods
- More nimble decision-making – we take full responsibility for our investment decisions, which reduces or eliminates committee time and delays
- Continual monitoring – Active management reflects near-term market expectations and helps identify shorter-term opportunities
- A focus on the unique needs of your participants – Our asset allocations and glidepath are focused on lifetime income throughout accumulation and retirement years
- Improved diversification at a potentially lower cost – Most single-manager target date funds can’t give participants the same size and scale
*Source: ING U.S. Investment Management and ING Retirement Research Institute, "Participant Preferences in Target Date Funds: An Update," February 2014.
Information provided by SEI Investments Management Corporation (SIMC), a registered investment adviser and wholly owned subsidiary of SEI Investments Company.