Target-date retirement funds are catching on at
"Today's workers have significant responsibility for their own retirement security," said Matthew Scanlan, who heads BGI's Americas institutional business. "Individuals want investment solutions that are appropriate, sensible and easy-to-understand, and the pre-determined objectives of lifecycle products make intuitive sense and allow people to make a single, powerful investment choice," he said.
According to the Lincolnshire, Ill.-based human resource consulting firm
BGI credits much of its growth to the inclusion of Real Estate Investment Trusts (REIT) and Treasury Inflation Protection Securities (TIPS) in their funds. "Adding asset classes that aren't highly correlated with equity markets is a good way to lower overall portfolio risk," Scanlan said.