Each fund is structured as a fund-of-funds and will invest primarily in a combination of Van Kampen-managed mutual funds and six open-architecture, multi-firm managed funds advised by Russell Investments. This structure will allow for broad levels of internal and external manager diversification.
The Van Kampen Retirement Strategy Funds are easy for investors to understand and for plan sponsors to implement, yet they offer strategic asset allocation, access to global markets, broad diversification and sophisticated risk control, said Timothy Sweeney, managing director and director of Van Kampens defined contribution business.
Some of the funds will have the ability to include allocations to international equities, real estate and inflation-indexed securities. The funds will operate on a glide path to actively manage asset allocation over a participants entire accumulation phase, and to protect against longevity risk, another 15 years beyond the retirement date.