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Article: Custom lifecycle funds: Next generation of lifecycle products.
- Article from:
- Employee Benefit News
- Article date:
- September 15, 2006
- Author:
CopyrightCOPYRIGHT 2006 SourceMedia, Inc. This material is published under license from the publisher through the Gale Group, Farmington Hills, Michigan. All inquiries regarding rights should be directed to the Gale Group. (Hide copyright information)
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Lifecycle funds, consisting of a portfolio that gradually changes over time targeted to the participant's date of retirement, remain a hot product for plan sponsors. However, there is an even newer option that is generating buzz among both sponsors and advisers: custom lifecycle funds.
"These are so new there are many definitions floating around," says Matt Smith, managing director of Russell Retirement Services.
In general, as their name implies, they involve customizing a lifecycle fund to fit the specific need of a particular plan sponsor. Currently, most plan sponsors offering lifecycle funds select them as an off-the-shelf product from an outside ...