State Street Alters Asset Allocations for Target Date Funds

April 24, 2007 ( - The investment management arm of State Street Global Advisors has made some asset allocation changes to its target date fund strategies to better generate retirement income for investors.

The Boston-based asset manager announced that the new asset class adjustments for its target date funds include:

  • Greater international exposure to its target date portfolios,
  • Treasury Inflation Protected Securities, credit bonds and stable value investments; and
  • An adjusted asset-allocation glide path to have a modest increase in the ending equity allocation in retirement.

“We regularly conduct reviews of our strategies, but these changes together address larger secular changes in the marketplace, most important of which are longer life expectancies and a changing retirement landscape particularly the transition to retirement and the early retirement years,” Gary Conway, vice president of the business development team at State Street, said in a news release. “We believe the adjustments to our Target Retirement strategies successfully address these and other market changes.”