Plan sponsors now have the choice of selecting up to six funds from a list of select outside mutual funds for certain positions in the Time Horizon Matrix Model Portfolios, to be used in combination with Seligman Mutual Funds. This is being made available because of the Growth 401(k)’s open architecture design, Seligman said in a news release.
Seligman Time Horizon Matrix provides plan participants with an investment process that may help build wealth and manage risk over time by employing an asset allocation plan focused on specific goals and time frames. The Matrix features a mechanism to adjust the participant’s asset mix over time using a process called migration. Migration allows participants’ portfolios to reflect their changing investment needs as their retirement goal approaches. With each annual migration, portfolio weightings are shifted to historically less volatile asset classes.
The open architecture system is available to plans that have 200 or more eligible employees or plan assets of at least $2 million, with a minimum of 50 eligible employees.