JPMorgan Launches ’Target Date Navigatorsm’

First-of-its-Kind Process to Effectively Guide Target Date Fund Selection



New York.- JPMorgan Asset Management (“JPMAM”) today announced the launch of the first-of-its-kind resource, JPMorgan’s ’Target Date NavigatorSM’, a patent pending evaluation process to help advisors and their plan sponsor clients identify target date funds most closely aligned to a plan’s goals and participants’ savings behavior.

Designed and created by JPMorgan’s retirement and investment professionals, ’Target Date Navigator’ is the first framework to categorize funds according to their investment composition and glide path strategy, creating a map of the target date fund universe. Since not all target date funds are created equal and generally differ according to their investment time horizons and level of asset class diversification, this tool fills a necessary void in the marketplace in determining which funds might best fit the particular needs and the goals of each retirement plan. ’Target Date Navigator’ should also assist advisors and their plan sponsor clients to ensure fiduciary responsibilities are being addressed and that plans are compliant with qualified default investment alternative (“QDIA”) guidelines.

Since target date funds are becoming the most popular option chosen for QDIAs, JPMAM believes that more can be done to help advisors and their plan sponsor clients distinguish between competing funds and address fiduciary responsibilities in the selection and monitoring of these investments.

“What we have found in the marketplace is a real disconnect in the alignment of participants’ behaviors and needs, plan sponsors’ goals, and target date strategy selection,” said David Musto, Managing Director of Retail Investment Only Retirement, JPMorgan Asset Management. “Retirement advisors and plan sponsors have been hungry for an easy to use and intuitive target date evaluation solution.”

“We believe our process and tool-set will provide the marketplace with an elegant solution. In the hands of independent advisors, this could become the industry standard for target date fund categorization.”

Using JPMorgan’s ’Target Date Navigator’ involves the following three step process:
-Assessing the plan’s desired level of equity exposure for participants at or near retirement,
-Determining the plan’s philosophy regarding asset class diversification,
-Comparing and selecting the most appropriate target date funds using JPMorgan’s ’Target Date CompassSM’.

“The Navigator does not favor any specific type of target date strategy. What it does is distinguish the differences between various funds and helps advisors and plan sponsors select a good fit for their plan sponsor clients and participants,” added Mr. Musto.

“We take pride in our efforts to question current practices and false assumptions, and deliver real world applications that we believe may lead to more successful retirement outcomes for American workers. The bedrock of our insights and expertise in developing this tool is based on our own studies of the target date fund environment and 401(k) participant behavior. We look forward to working with the industry to help advisors and plan sponsors assess the target date fund universe effectively.”

JPMorgan is already in discussion with a select group of advisors and plan sponsors to begin the rollout of the JPMorgan ’Target Date Navigator’ this month.