Custom Target Date Fund

Starting with the needs of your participants

SSGA can work with you to define your objectives for target date funds and to help ensure that your default investment option is uniquely suited to the needs of your participants.

Providing more flexibility, control and precision

Custom target date funds may provide greater control over the underlying investment managers, opportunities to improve diversification and the possibility to reduce overall plan expenses.

Being a leader in custom risk-based solutions

With a global investment team, we manage over $280 billion in multi-asset class solutions as of September 2018.

 

Key Elements to Consider

We believe plan sponsors need to explore four key elements when considering a custom target date solution.

 

Making the Right Choice for Your Plan

Customizing target date funds is a complex decision that creates a number of new responsibilities for plan sponsors. Not all plan sponsors may need customization and off-the-shelf target date funds are a strong choice for many. We recommend exploring the spectrum of available options, which includes the following:

  • Maintaining your off-the-shelf target date funds
  • Tailoring the glidepath to better meet participant needs
  • Customizing fund construction by selecting individual investment managers and/or additional asset classes

 

A Leader in Custom Solutions

As a leader in defined contribution investment solutions, SSGA offers a broad range of choices for target date funds, from our low-cost, index-based family of target date funds to fully customized funds. We bring a disciplined, institutional approach designed to help improve retirement outcomes for your participants.

Important Risk Discussion

Asset allocation is a method of diversification that positions assets among major investment categories, and may be used in an effort to manage risk and enhance returns. It does not, however, guarantee a profit or protect against loss.

SSGA Target Date Fund are designed for investors expecting to retire around the year indicated in each fund’s name.  When choosing a Fund, investors should consider whether they anticipate retiring significantly earlier or later than age 65 even if such investors retire on or near a fund’s approximate target date. There may be other considerations relevant to fund selection and investors should select the fund that best meets their individual circumstances and investment goals. The funds' asset allocation strategy becomes increasingly conservative as it approaches the target date and beyond. The investment risks of each Fund change over time as its asset allocation changes.

Frequent trading of ETFs could significantly increase commissions and other costs such that they may offset any savings from low fees or costs.