Money Manager Teams with Wilshire on Target-Date Offerings
A news release said the Payden/Wilshire Longevity Funds consist of four target maturity portfolios – 2010, 2020, 2030 and 2040 – that are designed to take investors through retirement.
“Up until now, most target maturity funds have been designed to manage retirement assets for individuals until they reach their retirement age, but not afterwards,” said Gregory P. Brown, principal at Payden & Rygel and the firm’s lead in launching the new fund family.
According to the news release, Wilshire’s research
found that many glide paths turn conservative too
quickly, while others take on unacceptable risk,
disregarding the investor’s liabilities and funding
status.
The blending of the traditional asset-only efficient
frontier with the liability-aware surplus frontier is a
proprietary technique developed by Wilshire. The surplus
frontier is the curve that gives preference to asset
classes that will maximize the likelihood of having a
surplus starting at retirement.
The announcement said Payden will lead the distribution
and servicing effort for the Longevity Funds, focusing on
financial intermediaries and third party administrators
in the defined contribution market. Wilshire will serve
as sub-adviser, responsible for construction of the
portfolios, including the asset allocation, the selection
of the underlying investments, and the ongoing
adjustments to the glide path.
More information is at
http://www.payden.com
.