Lifestyle Participants More Content

February 13, 2001 (PLANSPONSOR.com) - Lifestyle fund investors are more likely to be happy with the rate of return on their investments, according to a new survey.

Participants with lifestyle funds in their retirement plans are also more likely to want assistance making fund choices, but less likely to turn to friends and family for that assistance, according to American Express annual participant satisfaction survey.

Lifestyle funds typically represent a “pre-mixed” portfolio of funds that correspond to selected investing time horizons or risk profiles.

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Contented

The survey of participants in plans administered by American Express, found that participants in lifestyle funds are 12% more likely to be content with the rate of return on their investments.  Those same participants are 29% more likely to prefer using the company intranet for information than face-to-face meetings with human resources or financial advisors.

American Express offers five lifestyle funds under the name American Express Trust Horizon Funds.

Participants with an investment in American Express lifestyle funds were:

  • 15% more likely to be interested in information on goal setting.
  • 10% more likely to want more assistance in choosing among investment options in their plan – but are 13% less likely to rely on the advice of co-workers, family members or friends
  • 15% more likely to be interested in the topic of specific investment options in their plan.

American Express teamed up with Spectrem Group in the annual participant satisfaction survey, mailed to some 5,000 randomly selected 401(k) participants.

– Nevin Adams      editors@plansponsor.com

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