According to an announcement, the expense ratios for each of the target-date funds will be reduced to 1.15%, which includes 0.45% of various service fees paid to platforms. The other 0.70% is the cost of the underlying funds, management fees, and fund operating expenses, according to the firm. The revised fee structure took effect May 1.
“Our goal is to offer investors a superior investment solution with competitive fees as they choose an investment tied to their retirement goals,” said David Hilton, vice president and head of the Retirement Services Group at Payden & Rygel. “Target-date funds continue to be the main asset class chosen by 401(k) participants. These funds give investors the ease of using one investment for life. Our funds are designed to take a participant into and through their retirement years.”
Hilton said that an important distinguishing feature of the Payden/Wilshire Longevity Funds is its investment approach. While many fund companies use their own offerings to create their target date funds, Hilton explained, “we launched these funds with a view that open architecture and third-party asset allocation are the best approach. We found the best asset allocation model, prepared by Wilshire Associates, and together we built a true open-architecture fund series that invests in mutual funds, exchange-traded funds, and separate accounts.”
The asset allocation glide path of the firm’s target funds continues to be managed by Wilshire Funds Management, a business unit of Wilshire Associates Incorporated. Wilshire serves as sub-adviser, responsible for construction of portfolios, including the asset allocation, selection of underlying investments, and the ongoing adjustments to the glide paths.
The Payden/Wilshire Funds were launched June 2007.
More information is available at www.payden.com.