Data & Research April 25, 2007

Young Adults Interested in Planning for Retirement

As the understanding that the safety net of Social Security might not be there in the future, young adults seem poised to prepare for their post-working years.
Reported by
In fact, half of investors between the ages of 18 and 24 are currently saving for retirement, with almost another third of them (30%) saying they plan to begin such saving in the near future, a recent survey says.
According to the survey by YOUNG MONEY magazine, America’s young investors are far more interested in saving for their retirement (32%) than in saving for a house or a car (7%), saving for college (3%), or paying off debts (1.4%).
Of those in the online poll who said retirement was their number one goal, 56% were women.
In addition to being aware of their need to save for retirement, these young adults also seem aware of the need to be financially savvy now: about half of the 1,000 respondents, with an average annual salary of $45,000, follow a budget.
The Markets April 25, 2007

XTF Introduces Mutual Fund Portfolios

XTF has introduced nine new ETF-based mutual fund portfolios, available with four pricing models, targeted for the 401(k) market and retail advisers.
Reported by

According to an announcement from the asset manager, the new portfolios will be provided both through advisers and companies serving qualified retirement plans that will offer the funds on their platforms. The portfolios include: three tactical asset allocation portfolios – conservative, moderate and aggressive; four target date portfolios from 2010 – 2040+; a Country Rotation Portfolio, and a Sector Rotation Portfolio.

The three tactical risk-based portfolios – Conservative, Moderate and Aggressive – have equity exposures of 40%, 60% and 80%, respectively. The four target date portfolios – ETF 2010, ETF 2020, ETF 2030 and ETF 2040+ – are reallocated among assets annually, gradually reducing equity exposure as investors approach and enter their retirement years, XTF said.

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The Country and Sector Rotation Portfolios invest in ETFs based on specific countries and industry sectors. XTF models each country or sector independently, compares its risk/reward profile to an equivalent investment in intermediate-term U.S. Treasuries, and invests in whichever is more favorable.

The new funds will be offered based on the following pricing models:

  • Class I for the institutional market: 69 bps total;
  • Class A: includes a 12(b)1 fee of 25 bps;
  • Class R for the 401(k) market: includes a 50 bps 12(b)1 fee;
  • Class C: includes a 1% CDSC over time to the investor.

More information can be found at www.xtf.com.

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