NY Firm Announces Dow Jones Target Date Funds

September 22, 2005 (PLANSPONSOR.com) - A New York-based fund family has unveiled a new family of fund offerings pegged to the Dow Jones US Target Date Indices.

A news release from Arrivato Advisors LLC said the Arrivato Dow Jones U.S. Target Date Funds results from a licensing agreement between Arrivato Advisors and Dow Jones Indexes.

The Arrivato Dow Jones U.S. 2010 Fund, the Arrivato Dow Jones U.S. 2015 Fund, the Arrivato Dow Jones U.S. 2020 Fund, the Arrivato Dow Jones U.S. 2030 Fund, and the Arrivato Dow Jones U.S. 2040 Fund are designed to track the overall performance of the Dow Jones U.S. Target Date Indexes, less operating expenses, the announcement said. Each fund strives to reduce its risk by automatically rebalancing its asset class allocations as the target dates approach.

Each of the Dow Jones U.S. Target Date Indexes is comprised of 10 underlying indices representing equities, bonds, and cash.   These asset class indexes are weighted according to the specific investment time horizon (see  Dow Jones Launches Two New Indices ).  This strategy enables investors to select a single diversified account comprised of a combination of equity and fixed income securities that gradually adopts a more conservative asset allocation with the approach of the Fund’s target date (See  Lifestyle Funds: Simplicity Sells ).  

Each Fund seeks to provide capital appreciation and current income consistent with its current asset allocation.   The initial asset allocation for each of the Funds is as follows:

  • 2010 Fund: 18% equity investments /75% fixed income investments/7% cash
  • 2015 Fund: 35% equity investments/61% fixed income investments/4% cash
  • 2020 Fund: 51% equity investments/45% fixed income investments/4% cash
  • 2030 Fund: 79% equity investments/17% fixed income investments/4% cash
  • 2040 Fund: 90% equity investments/6% fixed income investments/4%cash.

More information is at  www.arrivatofunds.com .