BOSTON–(BUSINESS WIRE)–Right this moment, Putnam Investments formally launched TargetDateVisualizer®, designed to assist advisors higher information plan sponsors in deciding on acceptable target-date mutual funds and collective funding trusts (CITs) for inclusion in office financial savings plans, primarily based on particular risk-tolerance preferences and funding philosophy.
The dynamic analysis software seeks to supply higher readability and perception into the underlying funding glide paths of over 100 totally different target-date methods, in addition to the portfolio threat ranges and key efficiency traits of those fashionable retirement financial savings autos.
Using a extremely participating and user-friendly interface, TargetDateVisualizer helps determine most well-liked target-date methods primarily based on how aggressive or conservative an advisor wish to be within the early and late phases of members’ working lives – and in addition how they outline success total. TargetDateVisualizer takes these dynamics into consideration and permits advisors to raised distill acceptable target-date choices to think about for his or her shoppers.
In discussing Putnam’s new software for the retirement market, Steven P. McKay, Head of Defined Contribution Investment Only (DCIO) at Putnam mentioned, “The journey and end result of a target-date technique is decided by a big selection of things, together with the underlying glide path and funding composition. Putnam TargetDateVisualizer was constructed to help advisors and their shoppers in making higher sense of the quite a few target-date methods obtainable — to allow them to extra efficiently determine these merchandise which are greatest aligned with the wants of their plans’ goals.”
TargetDateVisualizer: Including a Strategic Lens to the Choice Course of
TargetDateVisualizer works by analyzing the glide path of each target-date technique, each mutual funds and CITs, with at the very least a three-year observe report – 108 in complete at current time. The software employs an easy-to-use, interactive framework that asks just a few key questions relating to funding philosophy and threat preferences, in each the early and late phases of a participant’s working life.
TargetDateVisualizer then frames how a lot fairness sensitivity a target-date classic has at crucial factors alongside the glide path. Subsequently, it plots the funds most aligned with the person’s risk-tolerance, leading to a extra targeted set of choices for consideration that may be in contrast head-to-head primarily based on efficiency and different vital threat components. The ultimate output offers detailed evaluation that can enable advisors to doc all the evaluation and/or choice course of for his or her shoppers.
“Target-date strategies provided by totally different asset managers could have many options in widespread, however no two are precisely alike,” mentioned McKay. “In some circumstances, the variations may be troublesome to find out, making it laborious to pick methods which are proper for the targets of the plan and its members. With its product-agnostic strategy, TargetDateVisualizer ought to show to be enormously useful to advisors when embarking on the difficult, however critically vital technique of figuring out the optimum target-date technique for his or her shoppers.”
Progress of Goal-Date Funds
First developed within the Nineties, target-date funds grew quickly in recognition after 2006, when the Pension Safety Act licensed them as a certified default funding various in outlined contribution retirement plans. Complete belongings in target-date methods reached $2.8 trillion by the tip of 2020, in keeping with Morningstar.1
About Putnam Outlined Contribution Funding Solely
With greater than 30 years of expertise working with outlined contribution plan sponsors, advisors and consultants, Putnam DCIO affords an array of investment-only merchandise and industry-leading help and repair for the retirement market, to assist members make investments for his or her future. Putnam DCIO had roughly $32 billion in belongings below administration on the finish of March 2021. Putnam affords two target-date collection within the market: Putnam Retirement Benefit Funds and Putnam RetirementReady Funds. Putnam’s retirement methods are managed by the agency’s International Asset Allocation workforce.
About Putnam Investments
Based in 1937, Putnam Investments is a worldwide cash administration agency with over 80 years of funding expertise. On the finish of April 2021, Putnam had $197 billion in belongings below administration. Putnam has workplaces in Boston, London, Frankfurt, Tokyo, Singapore and Sydney. For extra info, go to putnam.com.