Standard Life is launching a product that combines target-year funds with lifecycle funds.
The so-called Model Dynamic Portfolios allows plan members to select funds that are best suited to their investment mix. Assets are readjusted as members age and are rebalanced quarterly to remain aligned with the asset mix.
“In the last few years, the marketplace has seen an upsurge in the number of target-year and lifecycle funds. These invest towards an anticipated retirement date or according to an investor’s risk profile, but neither product takes both factors into account,” said Anthony Cardone, vice-president, Group Savings & Savings, with Standard Life. “[This products] over come the limitations of target-year and lifecycle funds by investing for both time and risk level.”
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