Findings on lifecycle funds
, including target-date funds and target-risk funds, show the focus shifting from asset maximization to liability matching.
Qualified default investment alternatives--known as lifecycle funds
or pre-mixed funds--are a positive way to simplify portfolio allocation decisions.
A recent survey of more than 200 large employers by Aon Hewitt shows 83% offer either targetdate or lifecycle funds
in their 401(k)s, and more than a third of the remaining companies are considering doing so.
To gain access to alternative asset classes in a plan that doesn't provide a direct option for investing in them, he suggests looking at target-date, target-risk or lifecycle funds
, some of whose models include alternative asset classes.
Eastern European Asset Management Industry - Investment Analysis is part of the Financial Benchmarking in the Asset Management Industry subscription, which also includes research services in the following markets: European Emissions Trading Market, North American Outcome-Oriented Funds: Lifecycle Funds
- Investment Analysis, Analysis of Active Extension or Short-enabled Investment Strategies, and European Green Investments Market.
It's an interesting view and relevant to the Gulf in that, whilst lifecycle funds
are not exactly a household phenomenon, the way they are managed is very common.
offer management assistance by providing investments that represent various asset classes and investment styles in a single fund based on a single retirement date.
These "autopilot" investment vehicles are called target-date or lifecycle funds
, and they've become increasingly popular with investors who prefer a hands-off approach to saving for retirement or college.
People can choose safer government securities or invest in the lifecycle funds
Or consider investing the 20% in other lifecycle funds
with target dates beyond your initial retirement year.
People should be auto-enrolled into lifecycle funds
- balanced funds designed to become more conservative as the investor approaches retirement by moving out of equities and into fixed income investments - with set target retirement dates for each member, unless they specifically opt out.
The second is a series of custom lifecycle funds
, including a conservative, moderate and aggressive blend with eight underlying mutual funds, both proprietary and nonproprietary blended to form the pre-mixed funds.