CUNA Redesigns Target Date Series

May 24, 2010 ( - CUNA Mutual Group, manager of credit union retirement plans, has teamed up with Madison Asset Management to reengineer its Ultra Series Target Retirement Date Funds to support an outcome-based retirement planning model.

The redesigned funds use a more conservative approach in the 10 years prior to retirement and after retirement with a focus on capital preservation. “The funds’ glidepath uses a unique ‘risk management zone,’ which gives portfolio managers the ability to adjust the equity exposure based on current market valuations and economic conditions.” said Tom Eckert, vice president of Retirement Plan Services, in a press release.   

“When you transition from getting a paycheck and accumulating assets to generating your own income by spending down your assets, this is a major decision point.  We want to protect assets at this time so people can make prudent choices without the risk of a market downturn derailing their plans,” said Scott Knapp, CFA and director of investment strategy for CUNA Mutual.  

According to the announcement, the Ultra Series Target Date Funds are now being used in more than 2,000 401(k) plans offered by CUNA Mutual and feature Target 2020, 2030 and 2040 versions.  The funds are managed by Madison Asset Management.  

CUNA Mutual manages 4,000 credit union retirement plans representing $6 billion in assets under administration.