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| | | | Target Maturity Solutions | | | Ibbotson’s Target Maturity Service builds customized portfolios for asset allocation investment solutions designed to support a retirement plan participant’s entire lifespan. These solutions apply academic theories to create practical programs of bundled lifecycle mutual funds for retirement plan sponsors and providers based on the characteristics of their participants. | |
| | | | Scalable construction: Supporting plans of all sizes | | |
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| | | Ibbotson builds custom target maturity portfolios for some of the largest plan sponsors, as well as for small- and mid-tier plans. Starting with a plan provider’s current investment lineup, Ibbotson applies its proprietary investment methodology to create a custom, competitive investment offering constructed specifically for the plan’s participants. | | | | | Customized portfolios from existing lineups: Building for participants | | |
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| | Aligning existing investment options with participant demographics, Ibbotson’s Target Maturity Service creates customized target maturity portfolios specific to a plan’s participants. Ibbotson can also suggest additional asset classes that may improve a lineup and can collaborate with clients to identify suitable investment managers.
Read about Ibbotson’s Target Maturity Solutions 
Read about the Top Ten Target Maturity Questions | | | | | Rigorous theory and methodology: Creating solutions based on research | | |
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| | By estimating the participants’ human capital, or potential to earn and build wealth, Ibbotson develops an appropriate stock/bond mix along the target maturity glide path, or shifting equity exposure. With this approach, Ibbotson can make a glide path more aggressive or more conservative based on the characteristics of a plan’s participants. Factors considered in the customization process include the existence of a defined benefit plan, 401(k) balances, savings rates, median salaries, and salary stability.
Read about Ibbotson’s target date methodology
Read about our lifetime asset allocation methodologies
| | | | | A consultative approach: Collaborating with clients | | |
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| | Working with plan sponsors or providers, Ibbotson designs target maturity programs that fit the needs of the participants. Program elements that are considered include number of portfolios, in-retirement solutions, and appropriate asset classes.
More about Ibbotson | | | | | Liability-driven techniques: Preparing for the payout | | |
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| | | Ibbotson uses liability-relative optimization to determine an asset allocation mix. This technique accounts for the drawdown phase of a participant’s retirement as a “liability” that must be funded by the real return asset classes in the accumulation and in-retirement portions of the glide path. Using this technique helps build portfolios that address risk factors and can support payouts. | | | | | A communication resource: Providing program support for participants | | |
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| | Ibbotson offers a range of options to help clients implement their programs. A dedicated portfolio management team works with investment committees to address any program needs that may arise. Ibbotson’s asset allocation presentation experts can assist with participant education efforts related to the program. Materials on our glide path methodology are available to help clients create enrollment and education materials. A library of ready-to-use content on asset allocation and other financial concepts is also available to educate participants.
Ibbotson Target Maturity Report for Q1 2013
Ibbotson's Reaction to the Joint SEC DOL Target-Date Fund Hearing |
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| | The Morningstar Investment Management division is a division of Morningstar and includes Morningstar Associates, Ibbotson Associates, and Morningstar Investment Services, all registered investment advisors and wholly owned subsidiaries of Morningstar, Inc. All investment advisory services described herein are provided by one or more of the U.S. registered investment advisor subsidiaries. | |
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