Callan Associates Launches Target Date Funds

September 20, 2007 ( - Callan Associates' Trust Advisory Group will act as adviser to a series of target maturity collective funds designed for defined contribution plan participants.

According to a press release, the funds are sponsored and maintained by AST Capital Trust Company and Callan will act as the investment adviser responsible for asset allocation and manager selection.

The funds are issued in five-year increments, 2005 through 2045, but the firm plans to extend its series to include a 2050 fund for newer employees.

Callan GlidePath was introduced in July 2007 and will use nine investment advisory firms specializing in areas such as small cap equities and inflation protected securities. The series will also use direct real estate funds rather than a portfolio of Real Estate Investment Trusts (REITs) to gain real estate exposure.

“Target maturity funds are rapidly replacing defined benefit plans as the nation’s primary retirement savings vehicle,” said Greg Allen, president and director of research for Callan Associates, in the press release. “Our industry has an obligation to build funds that can live up to that challenge.”

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