Russell Investments announced today the launch of six new funds in its
LifePoints® Funds, Target Date Series. The new
funds include the 2015 Strategy Fund, 2025 Strategy Fund, 2035 Strategy
Fund, 2045 Strategy Fund, 2050 Strategy Fund, (together, the “Strategy
Funds”) and the “In
Retirement” Fund.
The new funds round out the portfolio options available within the
Target Date Series, which to date have included the 2010 Strategy Fund,
2020 Strategy Fund, 2030 Strategy Fund and 2040 Strategy Fund. The
Target Date Series is designed to simplify the asset allocation process
for plan participants in order to help them save for retirement. Adding
the new funds to the series further enhances the investment choices
available to retirement plan sponsors and their plan participants.
“Our intent with these new funds is to make it
easier for plan sponsors to offer more portfolio options and for plan
participants to be able to immediately identify which of the options is
most appropriate for them, based upon their anticipated retirement date,”
said Matt Smith, managing director, Russell Retirement Services. “When
these products first emerged, it was appropriate to offer them in
ten-year increments given the dynamics of the market at the time. As
this product category has developed, our clients have asked for five
year increments and we’re happy to be able to
bring ours to market.”
Like the existing LifePoints Funds, Target Date Series, the new Strategy
Funds will utilize the same glide path with a diversified mix of
underlying funds that takes into account the participant’s
retirement year. As a Strategy Fund’s target
year approaches, the underlying fund allocation shifts to a more
conservative mix of bonds-to-stocks using a glide path that takes into
account both risk and return objectives. The fixed asset allocation of
the In Retirement Fund (32% equity underlying funds/68% fixed income
underlying funds) is consistent with the allocation at the end of the
existing target date glide path.
The In Retirement Fund is intended for investors who are no longer
working. The fixed asset allocation of the In Retirement Fund is
intended to support an inflation-adjusted average annual withdrawal rate
of 4% of initial investment (before fees) over a long-term time horizon
(approximately 20 years) with a portion of the initial investment
remaining at the end of that time horizon. However, neither the Fund nor
RIMCo represent or guarantee that the Fund will be able to meet this
goal.
The Target Date Series Funds are structured as “fund
of funds” and invest in underlying Russell
multi-manager funds.
Russell LifePoints Funds Family
Russell’s LifePoints Funds are a family of
funds of funds and include the Target Date Series and Target
Portfolio Series. LifePoints represent an end-to-end solution for
individuals saving for retirement. Assets in these funds are allocated
among a diversified mix of underlying Russell funds, which are comprised
of a selection of asset classes, styles and investment managers. This
approach is designed to strategically diversify each individual
portfolio for every season of the market.
About Russell
Russell Investments provides strategic advice, world-class
implementation, state-of-the-art performance benchmarks and a range of
institutional-quality investment products. With nearly $228 billion in
assets under management (as of 12/31/07), Russell serves individual,
institutional and advisor clients in more than 40 countries. Russell
provides access to some of the world's best money managers. It helps
investors put this access to work in corporate defined benefit and
defined contribution plans, and in the life savings of individual
investors.
Founded in 1936, Russell is a subsidiary of Northwestern Mutual Life
Insurance Company and headquartered in Tacoma, Wash. Russell has
principal offices in Amsterdam, Auckland, Johannesburg, London,
Melbourne, New York, Paris, San Francisco, Singapore, Sydney, Tokyo and
Toronto.
Copyright © Russell Investment Group
2001-2006. All rights reserved. Russell Investment Group, a Washington,
USA corporation, operates through subsidiaries worldwide, including
Russell Investments, and is a subsidiary of The Northwestern Mutual Life
Insurance Company.
Fund objectives, risks, charges and expenses should be carefully
considered before investing. A prospectus containing this and other
important information can be obtained by calling (800) 787-7354 or
visiting www.russell.com. Please
read the prospectus carefully before investing.
The LifePoints® Funds are a series of fund of
funds which expose an investor to the risks of the underlying funds
proportionate to their allocation. Investment in LifePoints Funds
involves direct expenses of each fund and indirect expenses of the
underlying funds, which together can be higher than those incurred when
investing directly in an underlying fund.
Securities distributed through Russell Fund Distributors, Inc. member
FINRA, part of Russell Investments.
RFD 08-7540
First Used: March 2008
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