Putnam Investments TargetDateVisualizer to help advisors get a better perspective on investing in retirement

BOSTON–(BUSINESS WIRE) – Today, Putnam Investments officially launched TargetDateVisualizer®, designed to help advisors better guide plan sponsors in choosing the appropriate target date mutual funds and collective investment trusts (CITs) to include in workplace savings plans, based on specific risk tolerance and investment philosophy preferences.

The dynamic valuation tool aims to provide greater clarity and a better understanding of the underlying investment trajectories of over 100 different target date strategies, as well as the risk levels of the portfolio and key performance characteristics of the target date. these popular retirement savings vehicles.

Using a very attractive and user-friendly interface, TargetDateVisualizer helps identify preferred target date strategies based on an adviser’s aggressiveness or prudence in the early and late stages of participants’ working lives – and also how they define overall success. TargetDateVisualizer takes this dynamic into account and allows advisors to better distill the appropriate target date options for their clients to consider.

Discussing Putnam’s new tool for the retirement market, Steven P. McKay, Defined Contribution Investment (DCIO) Manager at Putnam, said, “The journey and results of a target date strategy are determined by a wide range of factors, including the underlying downward path and composition of the investment. Putnam TargetDateVisualizer was designed to help advisors and their clients better understand the many target date strategies available – so they can better identify which products best match their plan’s goal needs. ”

TargetDateVisualizer: Adding a strategic lens to the selection process

TargetDateVisualizer works by analyzing the trajectory of each target date strategy, both mutual funds and CITs, with at least three years of experience – 108 in total at the moment. The tool uses an easy-to-use interactive framework that asks a few key questions regarding investment philosophy and risk preferences, both at the beginning and at the end of a participant’s working life.

TargetDateVisualizer then sets the sensitivity to actions of a target vintage at critical points along the descent path. Subsequently, it plots the funds most aligned with the user’s risk tolerance, resulting in a more focused set of options to consider that can be compared based on performance and other factors. significant risk. The end result provides a detailed analysis that will allow advisors to document the entire review and / or selection process for their clients.

“Target date strategies offered by different asset managers can have many characteristics in common, but none are exactly alike,” said McKay. “In some cases, the differences can be difficult to pinpoint, making it difficult to choose the strategies that suit the goals of the plan and its participants. With its product-independent approach, TargetDateVisualizer should prove immensely useful for advisors as they embark on the difficult, but critically important, process of identifying the optimal target date strategy for their clients. ”

Fund growth at target date

First developed in the 1990s, target date funds quickly gained popularity after 2006, when the Pension Protection Act authorized them as a qualifying default investment solution in defined contribution pension plans. Total assets for target date strategies reached $ 2.8 trillion by the end of 2020, according to Morningstar.1

About Putnam Defined Contribution Investment Only

With over 30 years of experience working with defined contribution plan sponsors, advisors and consultants, Putnam DCIO offers an investment-only product line and industry-leading support and services for the retirement market. , to help participants invest for their future. Putnam DCIO had approximately $ 32 billion in assets under management at the end of March 2021. Putnam offers two target date series in the market: Putnam Retirement Advantage Funds and Putnam RetirementReady Funds. Putnam’s retirement strategies are managed by the company’s global asset allocation team.

About Putnam Investments

Founded in 1937, Putnam Investments is a global fund management company with over 80 years of investment experience. At the end of April 2021, Putnam had $ 197 billion in assets under management. Putnam has offices in Boston, London, Frankfurt, Tokyo, Singapore and Sydney. For more information, visit putnam.com.

1 “Morningstar Report Finds Retirement Saver Contributions Suffer Even As Target Date Strategies Bounce Back From First Quarter 2020 Bear Market,” March 18, 2021

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