Want the latest retirement plan adviser news and insights? Sign up for PLANADVISER newsletters.
Products February 13, 2014
BlackRock Unveils CoRI Funds
Five mutual funds from BlackRock Inc. seek to deliver a
total return that tracks the expected median cost of lifetime income.
Reported by PLANADVISER Staff
The funds aim to provide long-term investment results that correspond to the total return of the applicable BlackRock CoRI Retirement Indexes, known as the CoRI Indexes.
Investors can remain in the CoRI fund for up to 10 years after turning 65 and can take distributions as part of a retirement income plan. Once the CoRI Fund reaches the year in which the investor turns 75, the fund will be liquidated and remaining investment returned to the individual. Similarly, once a CoRI Index reaches the year referenced in its title, it remains active for ten more years. The daily Index level will then represent the median price for immediate lifetime income.
The funds are available in institutional share classes under the following dates: BlackRock CoRI 2015 Fund (BCVIX); BlackRock CoRI 2017 Fund (BCWIX); BlackRock CoRI 2019 Fund (BCXIX); BlackRock CoRI 2021 Fund (BCYIX) and BlackRock CoRI 2023 Fund (BCZIX). Non-institutional class A shares are also available, the firm says.
The funds invest primarily in fixed-income securities and can also invest in other financial instruments. They will be managed by Scott Radell and James Mauro, from BlackRock’s North America portfolio solutions group in the Americas fixed-income alpha strategies.
An online tool that helps advisers or investors access the CoRI Indexes is on BlackRock’s website.