Even a small improvement in portfolio returns can make a big impact on financial security. Easier said than done. But, it’s precisely what we aim to achieve with our series of actively managed target date funds.
[Show on screen] Meet LifePath Dynamic.
Our goal for LifePath Dynamic is straightforward: Achieve consistent excess returns across market environments.
We’re aiming to deliver annualized returns that exceed our LifePath Index funds. A boost that, over time, can generate additional spending power in retirement.
Our differentiated approach:
- Lifecycle design
- Investment breadth
- And quality control
[On screen] Lifecycle design
With an active target date fund, lifecycle design matters. Both in terms of participant outcomes – and for measuring success.
Our approach is time-tested, with a glidepath that changes as a participant does and aims to deliver the consistent spending they want in retirement.
By using the same glidepath in our active and index funds, we can make it easier for plan sponsors and their advisors to measure the value of active management.
[On screen] Investment breadth
Have you thought about whether your active target date fund might be over-diversified?
Some providers take a kitchen-sink, fund-of-funds approach to asset allocation – but the risk is that you wind up with index-like returns at an active-price-point.
That’s why investment breadth matters. With BlackRock’s expansive active investment platform and hundreds of strategies at our fingertips, we handpick the most suitable underlying active managers .
We also use proprietary macro-economic research to make decisions about where to introduce active asset allocation insights, only changing course if we find something the market hasn't yet priced in -- and making sure we’re aware of the risks when we do it.
And instead of limiting ourselves to mutual funds, we leverage a full institutional toolkit.
The result? Intentional exposures, improved precision, and reduced overall portfolio risk for participants – delivered with the convenience our investors expect.
[On screen] Quality control
There are risks to lifecycle investing . But when it comes to the active risks in LifePath Dynamic, we rely on our tech and our people.
Aladdin®, our proprietary portfolio management software, helps us ensure that every risk exposure is precise, intentional, lowly correlated, and drives expected excess returns.
And at the end of the day, it’s one portfolio, managed by one team, with one outcome in mind - a better participant experience.
It’s how we’ve been able to grow participant balances and strive to protect those balances in even the most challenging market environments.
[On screen] LifePath Dynamic
LifePath Dynamic. It serves up the kind of sophisticated portfolio construction that large institutions, pension funds, and high-net-worth individuals expect.
So, ask yourself “why shouldn't my retirement plan participants benefit from these approaches to portfolio construction, too?”
With LifePath Dynamic, they can .
