Products November 2, 2009

Firms Unveil Target-Date Fund Index

BrightScope, a 401(k) data and analytics firm, and Target Date Analytics LLC, a consulting and research firm, unveiled the BrightScope On Target Index to help measure the risk and performance of target-date funds.

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According to a news release, the offering gives participants the ability to see how accurately a target-date fund lives up to its stated goals as outlined in the prospectus.

Unlike other target-date indexes, the BrightScope On Target Index considers participant behavior when determining the appropriate asset allocation for participants approaching retirement, according to the release.

More information is available at www.brightscope.com or www.ontargetindex.com.

Products November 2, 2009

ABA Rolls Out Enhanced Investment Structure

The ABA Retirement Funds Program has launched what it calls "an enhanced investment structure" for program participants.

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According to an announcement, the program’s new enhanced investment structure offers participants access to a “cutting edge menu of investment options normally available to only the largest corporations.”  Northern Trust, which recently began its role as ABA Retirement Funds investment fiduciary, will be managing this new investment menu.

ABA Retirement Funds, formerly American Bar Retirement Association and the affiliated ABA Members Retirement Program, offers tax-qualified retirement plan services exclusively to legal professionals through its sponsorship of the ABA Retirement Funds Program.

New Options

Under the new structure designed and managed by Northern Trust, plan participants will have a number of new investment options, including:

  • Large Cap Equity Fund
  • Small-Mid Cap Equity Fund
  • Real Asset Return Fund
  • Three target risk funds (Conservative Risk Fund, Moderate Risk Fund, and Aggressive Risk Fund).

According to ABA, the new structure incorporates plan demographics, participant behavior, and “takes advantage of new investment approaches and styles that are among the best of what the marketplace has to offer.”

“Northern Trust is a pioneer of the manager of managers investment strategy,” said Diane Fuchs, President, ABA Retirement Funds. “Its experience as a professional investment fiduciary will be instrumental in providing a stronger program for participants.” 

State Street Bank and Trust Company of New Hampshire remains trustee, with ultimate responsibility for offering investment options and selecting investment advisors, according to the announcement.

ABA Retirement Funds is an Illinois not-for-profit corporation established more than 40 years ago by the American Bar Association to help the legal community with retirement planning and solutions.

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For more information about ABA Retirement Funds, contact Brad Blewett, associate executive director, at 312.988.5854 or BlewettB@staff.abanet.org

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