For more information about PLANSPONSOR Europe 

James Redgrave
Managing Editor
Tel:+44(0)2073973802
Tel:+44(0)7817305075
EMAIL  

Graham Simons
News Editor
Tel:+44(0)2073973801 
EMAIL   

Daljit S. Sokhi
Online Sales Manager
Tel:+44(0)2073973809
Mob:+44(0)7792419482
EMAIL  

Robert W. Jones
Global Publisher
Tel:203-595-3174
EMAIL  

Think Green

PLANSPONSOR Europe  

is also available in a digital edition.

Check it out HERE  

FINANCE

e-mail   print   reprint   share   Login to Recommend

Interest In Target Maturity Funds Continues to Grow

01 August 2012 (PLANSPONSOREurope.com) – Target Maturity funds or lifecycle funds remain the most popular sector for funds launched within the last six months, according to data from asset management research firm Cerulli.

Such funds are be used by plan members to save for retirement taking on different exposures to risk as the plan member matures in age.

The research shows that lifecycle funds, which tend to have long-term, fixed, strategic asset allocations, recorded net inflows of €1.07bn during May with Italy and Luxembourg the two markets driving the investment trend, most notably through Intesa and ING funds.
 
Nine Target Maturity funds were launched in May, attracting €487.7m net inflows combined.  While predominantly retail products, the research notes a “growing” institutional interest in the sector for its ability to provide more diverse exposure compared to traditional "lifestyling" options.
 
The report says Italian Target Maturity funds have been a “huge” sales success, but unlike their French fonds a formule and Spanish garantizados cousins they do not come with a guarantee that all or part of an investor's capital will be repaid. According to Cerulli Italian asset managers have done their banks several large favours by circumventing costly guarantee pay-outs, but they may be storing up problems too.
 

PLANSPONSOREurope Staff
editors@plansponsoreurope.com





GfJ432Hghb43dfs3dasds4at8