Products November 11, 2008

Van Kampen Unveils Target-Date Offerings, Adviser Program

Van Kampen Funds has launched Van Kampen Retirement Strategy Funds, a new series of target-date portfolios.
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In concert with the launch of the new funds, Van Kampen said it will unveil a program for financial advisers that will provide support for, and education about, target-date funds. One element of this new program, built on proprietary research conducted for Van Kampen by research firm Luntz, Maslansky Strategic Research, examines the language typically used to describe target-date funds and how different word choices can more powerfully communicate the concepts underpinning these investment strategies, according to a Van Kampen release.

The release also said the new target-date offering involves a partnership with Russell Investments.

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The series consists of nine funds with target retirement dates from 2010 to 2050 (in five-year increments) and an “In Retirement” fund. Each is structured as a fund-of-funds, investing primarily in a combination of Van Kampen-managed mutual funds and multi-firm managed funds advised by Russell Investments.

The announcement said its asset allocation model for the new offerings incorporates a strategic approach that builds toward retirement goals while managing risk over time.

Each Van Kampen Retirement Strategy Fund achieves asset class diversification through allocations to nine distinct asset classes, including international equities and real estate securities. Additionally, the funds invest an increasing amount in inflation-indexed securities (TIPS) as they approach the target retirement date, to address the risk of inflation.

As it is increasingly common for plan participants to transition into retirement over a period of years, the funds will manage risk reduction through an individual’s entire accumulation phase and another 15 years beyond the retirement date.

“The market is evolving to the next generation of target-date funds, where asset allocation founded on pension principles, multi-firm management, and a broad range of asset classes are essential elements,” said Andrew Scherer, Managing Director, U.S. Intermediary Retail and Sales, in the news release. “The Van Kampen Retirement Strategy Funds bring next-generation thinking to target-date investing.’


Products November 11, 2008

Mercer Adds Recession Coping Skills to Web Content for Employers

Mercer launched a new section of its corporate Web site that provides insights and solutions to the challenges posed by the economic environment.
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A Mercer news release said “Leading through unprecedented times” features podcasts with Mercer consultants on a range of urgent HR-related issues, including the implications for employer-provided health benefits, executive remuneration, volatility and pension funding, and employee communications strategies in tough economic times.

For organizations interested in investment consulting related issues, a Mercer paper on the financial market turmoil addresses the shift in attention of institutional investors to operational risk, focusing specifically on cash management, collateral management, and counterparty risk.

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Other papers address securities lending, the crisis for money market funds in the wake of the Lehman Brothers failure, the unwinding of infrastructure funds, and the implications for hedge funds of the financial crisis, Mercer said.

“In times of economic distress, it becomes even more critical for organizations to optimize their workforces, use the right engagement and development strategies, review investment strategy and make the best human capital investments,” said M. Michele Burns, Mercer’s Chairman and Chief Executive Officer, in the news release. “Through our dedicated Web site, Mercer consultants share their insights and advice for dealing with some of the most urgent human capital, organizational and investment issues raised by the current financial crisis.”

More information is available at www.mercer.com/unprecedentedtimes.

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