BlackRock Updates Lifepath TDFs
announced changes to its LifePath series of target-date funds (TDFs). The firm
says it now will offer a broader choice among varying degrees of active asset
management within the fund series. It also will introduce a new fund designed
to capture “smart beta” factors.
LifePath fund series will be renamed BlackRock
LifePath Dynamic. These funds will offer greater flexibility in
adjusting the portfolio’s asset allocation in response to market conditions and
opportunities, the firm says. It will also provide access to more actively managed exposures. The
exposures will include strategies managed by the firm’s Scientific Active
Equity, Fundamental Fixed Income and Global Tactical Asset Allocation teams.
LifePath Dynamic is designed for plan sponsors who seek additional return
potential, and plans whose participants have a higher risk tolerance or are behind
in their savings. The funds are managed by Matthew O’Hara, co-head
of LifePath and global head of the Lifetime Asset Allocation Group at
BlackRock, and Phil Green.
BlackRock LifePath Active series will be renamed BlackRock LifePath Smart Beta. Its exposures will be converted to
80% to 90% iShares smart beta exchange-traded funds (ETFs). Smart beta strategies
have become increasingly popular for investors who want to manage risk and
target precise exposure to factors that are historical drivers of return, the firm says. BlackRock
LifePath Smart Beta funds are in the middle of the flexibility spectrum between
BlackRock’s new LifePath Dynamic
funds and the flagship LifePath Index
funds. They are managed by O’Hara, Ked Hogan and Andrew Ang.
will be no changes in the investment process or strategy of BlackRock LifePath Index funds.NEXT: SSGA
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