Putnam Investments has launched TargetDateVisualizer to help advisors better guide retirement plan sponsors in selecting target date funds and collective investment trusts (CITs) based on specific risk-tolerance preferences and investment philosophy.
Among other things, the tool seeks to provide greater clarity and insight into the underlying investment glide paths of over 100 different target-date strategies, as well as the portfolio risk levels and key performance characteristics of these retirement savings vehicles, according to the announcement.
“The journey and outcome of a target-date strategy is determined by a wide array of factors, including the underlying glide path and investment composition,” notes Steven McKay, Head of Defined Contribution Investment Only at Putnam. “Putnam TargetDateVisualizer was built to assist advisors and their clients in making greater sense of the numerous target-date strategies available—so they can more successfully identify those products that are best aligned with the needs of their plans’ objectives.”
To that end, it works by analyzing the glide path of every target-date strategy with at least a three-year track record (108 in total at present time). The tool employs an interactive framework that asks questions regarding investment philosophy and risk preferences, in both the early and late stages of a participant’s working life.
The tool then plots the funds most aligned with the user’s risk-tolerance, resulting in a focused set of options for consideration that can be compared head-to-head based on performance and other important risk factors, the announcement further explains.
