Products October 1, 2007

Zacks Launches Securities-Based Lifecycle Funds

October 1, 2007 (PLANSPONSOR.com) - Zacks Investment Research, Inc. has launched a lifecycle index series, which includes four target retirement dates.
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According to a press release, the lifecycle funds have no conflicts-of-interest or fee layering from sub-sector exchange-traded funds or proprietary mutual funds.

A securities-based lifecycle program reduces plan sponsor exposure to lawsuits because it complies with the new Pension Protection Act regulations at the highest levels, according to Zacks.

The series includes the following indexes:

  • Zacks 2040 Lifecycle Index
  • Zacks 2030 Lifecycle Index
  • Zacks 2020 Lifecycle Index
  • Zacks 2010 Lifecycle Index
  • Zacks At Target Lifecycle Index

“The industry average allocation to equities in 2010 funds is 52%. That may be the right answer for a Monte Carlo simulation but the wrong one for investors with three years to go before they fund a retirement annuity, a vacation home, education, a wedding, or long-term medical care,” said Michael Case Smith of Zacks Index and Allocation Group, in the press release. “As target dates near, people care more about return of capital than return on capital, regardless of what computer models say.”

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