The Markets April 25, 2007

State Street’s Target Date Funds Re-allocated

In order to better generate retirement income for investors, the investment management arm of State Street Global Advisors has changed the asset allocations of its target date fund strategies.

Reported by

Adrien Martin

The Boston-based asset manager announced that the new asset class adjustments for its target date funds include:

Greater international exposure to its target date portfolios,
Treasury Inflation Protected Securities, credit bonds and stable value investments; and
An adjusted asset-allocation glide path to have a modest increase in the ending equity allocation in retirement.

“We regularly conduct reviews of our strategies, but these changes together address larger secular changes in the marketplace, most important of which are longer life expectancies and a changing retirement landscape particularly the transition to retirement and the early retirement years,” Gary Conway, vice president of the business development team at State Street, said, in a news release. “We believe the adjustments to our Target Retirement strategies successfully address these and other market changes.”