Email
PrintSep 08, 2008
- J.P. Morgan Asset Management announced the launch of the first-of-its-kind process to effectively guide target date fund selection.
New York, September 8, 2008 – J.P. Morgan Asset Management ("JPMAM") today announced the launch of the first-of-its-kind resource, J.P. Morgan’s ‘Target Date NavigatorSM', a patent pending evaluation process to help advisors and their plan sponsor clients identify target date funds most closely aligned to a plan’s goals and participants’ savings behavior.
Designed and created by J.P. Morgan’s retirement and investment professionals, ‘Target Date Navigator' is the first framework to categorize funds according to their investment composition and glide path strategy, creating a map of the target date fund universe. Since not all target date funds are created equal and generally differ according to their investment time horizons and level of asset class diversification, this tool fills a necessary void in the marketplace in determining which funds might best fit the particular needs and the goals of each retirement plan. ‘Target Date Navigator' should also assist advisors and their plan sponsor clients to ensure fiduciary responsibilities are being addressed and that plans are compliant with qualified default investment alternative ("QDIA") guidelines.
Since target date funds are becoming the most popular option chosen for QDIAs, JPMAM believes that more can be done to help advisors and their plan sponsor clients distinguish between competing funds and address fiduciary responsibilities in the selection and monitoring of these investments.
"What we have found in the marketplace is a real disconnect in the alignment of participants’ behaviors and needs, plan sponsors’ goals, and target date strategy selection," said David Musto, Managing Director of Retail Investment Only Retirement, J.P. Morgan Asset Management. "Retirement advisors and plan sponsors have been hungry for an easy to use and intuitive target date evaluation solution."
"We believe our process and tool-set will provide the marketplace with an elegant solution. In the hands of independent advisors, this could become the industry standard for target date fund categorization."
Using J.P. Morgan’s ‘Target Date Navigator' involves the following three step process:
-Assessing the plan’s desired level of equity exposure for participants at or near retirement,
-Determining the plan’s philosophy regarding asset class diversification,
-Comparing and selecting the most appropriate target date funds using J.P. Morgan’s ‘Target Date CompassSM'.
"The Navigator does not favor any specific type of target date strategy. What it does is distinguish the differences between various funds and helps advisors and plan sponsors select a good fit for their plan sponsor clients and participants," added Mr. Musto.
"We take pride in our efforts to question current practices and false assumptions, and deliver real world applications that we believe may lead to more successful retirement outcomes for American workers. The bedrock of our insights and expertise in developing this tool is based on our own studies of the target date fund environment and 401(k) participant behavior. We look forward to working with the industry to help advisors and plan sponsors assess the target date fund universe effectively."
J.P. Morgan is already in discussion with a select group of advisors and plan sponsors to begin the rollout of the J.P. Morgan ‘Target Date Navigator’ this month.
# # #
About J.P. Morgan Asset Management:
With approximately $1.2 trillion as of June 30, 2008*, in global discretionary assets under management, J.P. Morgan Asset Management is one of the largest active asset managers in the world and one of the largest mutual fund companies in the United States, providing institutional, ultra high net worth and retail clients with investment products across all asset classes globally, including fixed income, equity, liquidity, real estate, private equity and hedge funds.
*Based on AUM for the Asset Management (JPMAM, PB, PCS) division of JPMorgan Chase & Co.
Important disclosure
This press release is intended solely to report on various investment views held by J.P. Morgan Asset Management. Opinions, estimates, statements of financial market trends that are based on current market conditions constitute our judgment and are subject to change without notice. We believe the information provided here is reliable but should not be assumed to be accurate or complete. The views described may not be suitable for all investors.
The Target Date Navigator is an adviser tool. As such it is meant to help advisers in their due diligence process when working with their plan sponsor clients. The tool is not meant to replace the fiduciary responsibilities that are inherent with all plan sponsors or the advice that advisers provide. If the tool is used, it should be used as part of a comprehensive due diligence process. Exclusive reliance on this tool to make investment decisions is not recommended. Any and all information set forth in the article and pertaining to the Target Date Evaluation Tool and all related technology, documentation, and information is confidential and proprietary to JPMorgan Chase Bank, N.A. © 2008 JPMorgan Chase Bank, N.A. All Rights Reserved. Patent Pending.
The ultimate choice of investment options is that of the plan sponsor with help from the adviser. The tool is not to be used as sales literature and can only be received as per a request from the adviser. All data in the tool is objective and based on publicly available information that has been obtained from sources deemed to be reliable. This data is subject to unintentional errors, omissions and changes prior to presentation without notice. The tool may not be reproduced in whole or in part in any manner. It is the responsibility of the adviser to independently confirm its accuracy and completeness. Information should not be construed as investment advice. Past performance is no guarantee of future results.
J.P. Morgan Asset Management is the marketing name for the asset management businesses of JPMorgan Chase & Co. Those businesses include, but are not limited to, J.P. Morgan Investment Management Inc., J.P. Morgan Investment Advisors, Inc., Security Capital Research & Management Incorporated, and J.P. Morgan Alternative Asset Management, Inc.
IRS Circular 230 Disclosure: JPMorgan Chase & Co. and its affiliates do not provide tax advice. Accordingly, any discussion of U.S. tax matters contained herein (including any attachments) is not intended or written to be used, and cannot be used, in connection with the promotion, marketing or recommendation by anyone unaffiliated with JPMorgan Chase & Co. of any of the matters addressed herein or for the purpose of avoiding U.S. tax-related penalties. © JPMorgan Chase & Co. 2008