According to a company news release, the program provides a framework advisers can use to evaluate design factors such as time horizon, participant behavior, risk management, and asset class diversification, and identify those target-date strategies that are most closely aligned with the goals of the plan sponsor and its participants (see JPMorgan Announces Target-Date Evaluation Product ).
Advisers can now go online and customize the Compass by adding or removing funds from the Target Date universe to focus on the most relevant funds. In addition, they can generate a target-date analysis report which provides a side-by-side quantitative and qualitative analysis of the selected funds.
“With a vast universe of target date funds to choose from, advisers and plan sponsors need a framework to sort out and identify the right option based on their goals,” said David Musto, head of J.P. Morgan’s retail investment only retirement business, in the news release. “With Target Date Compass, advisers can make sure they have thoroughly assessed the elements of a fund’s design and whether or not it is the right match for the plan.”
More information is available here .