Morningstar Introduces Target-Date and Target-Risk Indexes

Morningstar, Inc. has launched a family of asset allocation indexes, designed to benchmark target-date and target-risk investment products.

The Morningstar Lifetime Allocation Index series consists of 13 target-date indexes, each of which is available in three risk profiles—aggressive, moderate, and conservative. The index asset allocations adjust over time—even beyond the stated retirement date—by reducing equity exposure and shifting toward traditional income-producing and inflation-hedging asset classes (e.g., bonds and Treasury inflation-protected securities).

The Morningstar Target Risk Index series consists of five asset allocation indexes that span the risk spectrum from conservative to aggressive. All of the indexes are based on asset allocation methodology from Ibbotson Associates, a Morningstar company, an announcement said.

The family of asset allocation indexes can serve as benchmarks to help with target-date, target-risk, and retirement-income product selection and evaluation, or can be licensed to institutions for the creation of investment vehicles like mutual funds, exchange-traded funds (ETFs), or commingled trusts, the company said.

More information is available at