BlackRock Introduces Changes to LifePath Target Date Fund Series
November 18 2016 - 10:00AM
Business Wire
Focus on Broadening Series’ Spectrum by
Adding Smart Beta and More Flexible Active Options
BlackRock (NYSE: BLK) has made changes to its LifePath series of
target date mutual funds to better reflect today’s retirement
investing needs – in particular, by offering a broader choice among
varying degrees of active asset management within the fund series.
In addition to offering a more flexible active fund, LifePath will
now feature an innovative fund designed to capture “smart beta”
factors for enhanced performance.
BlackRock’s LifePath® Funds were the asset management industry’s
first target date funds (TDF) and today represents $144 billion in
assets under management (at 9/30/16). About one in four Fortune 100
companies use LifePath as part of their defined contribution plan
investment menus.
The changes announced by BlackRock, effective today, are:
- The BlackRock LifePath Active series
will be renamed BlackRock LifePath Smart Beta and will be
among the first TDFs of its kind, with its exposures converted to
80-90% iShares® smart beta exchange traded funds (ETFs). Smart beta
strategies have become increasingly popular for investors who want
to manage risk and target precise exposure to factors that are
historical drivers of return. These approaches seek to take
advantage of the performance premium that can be offered by certain
fundamental security factors such as momentum, quality and value,
as well as the risk reducing features of minimum volatility.
BlackRock LifePath Smart Beta funds are in the middle of the
flexibility spectrum between BlackRock’s new LifePath
Dynamic funds and the flagship LifePath Index funds, and
are managed by Matthew O’Hara, Ked Hogan and Andrew Ang.
- The LifePath fund series will be
renamed BlackRock LifePath Dynamic. The funds will now allow
for greater flexibility to adjust the portfolio’s asset allocation
to respond to market conditions and opportunities, and will have
additional access to more actively managed exposures. The exposures
will include strategies managed by the firm’s Scientific Active
Equity, Fundamental Fixed Income and Global Tactical Asset
Allocation teams. LifePath Dynamic is designed for plan sponsors
who seek additional return potential and plans whose participants
have a higher risk tolerance or are behind in their savings.
LifePath Dynamic funds are managed by Matthew O’Hara and Phil
Green.
There will be no changes in the investment process or strategy
of BlackRock LifePath Index funds, one of only two target
date fund series in the industry awarded a Gold rating by
Morningstar1. LifePath Index funds will continue to be managed by
Amy Whitelaw and Alan Mason, and has added Matthew O’Hara.
“BlackRock pioneered the target date fund more than 20 years ago
and we remain committed to offering easy-to-use solutions that
bring sophisticated investment and risk management to the challenge
of building retirement savings,” said Matthew O’Hara, Co-Head of
LifePath and Global Head of the Lifetime Asset Allocation Group at
BlackRock. “These changes illustrate our commitment to ensuring
that LifePath continues to help plan sponsors and participants
tackle today’s retirement investing needs.”
About BlackRock
BlackRock is a global leader in investment management, risk
management and advisory services for institutional and retail
clients. At September 30, 2016, BlackRock’s AUM was $5.1 trillion.
BlackRock helps clients around the world meet their goals and
overcome challenges with a range of products that include separate
accounts, mutual funds, iShares® (exchange-traded funds), and other
pooled investment vehicles. BlackRock also offers risk management,
advisory and enterprise investment system services to a broad base
of institutional investors through BlackRock Solutions®. As of
September 30, 2016, the firm had approximately 13,000 employees in
30 countries and a major presence in global markets, including
North and South America, Europe, Asia, Australia and the Middle
East and Africa. For additional information, please visit the
Company’s website at www.blackrock.com | Twitter: @blackrock_news |
Blog: www.blackrockblog.com | LinkedIn:
www.linkedin.com/company/blackrock
1 Latest rating as of 2/3/16. The Morningstar Analyst Rating is
not a credit or risk rating. It is a subjective evaluation
performed by the manager research analysts of Morningstar.
Morningstar evaluates funds based on five key pillars, which are
process, performance, people, parent, and price. Analysts use this
five pillar evaluation to determine how they believe funds are
likely to perform over the long term on a risk-adjusted basis. They
consider quantitative and qualitative factors in their research,
and the weighting of each pillar may vary. The Analyst Rating scale
is Gold, Silver, Bronze, Neutral, Negative. A Morningstar Analyst
Rating of Gold, Silver, or Bronze reflect an Analyst’s conviction
in a fund’s prospects for outperformance. Analyst Ratings are
continuously monitored and reevaluated at least every 14 months.
For more detailed information about Morningstar’s Analyst Rating,
including its methodology, please go to
http://corporate.morningstar.com/us/documents/MethodologyDocuments/AnalystRatingforFundsMethodology.pdf.
The Morningstar Analyst Rating should not be used as the sole basis
in evaluating a mutual fund. Morningstar Analyst Ratings involve
unknown risks and uncertainties which may cause Morningstar’s
expectations not to occur or to differ significantly from what we
expected.
Investing involves risks, including possible loss of principal.
As funds-of-funds, the Portfolios are subject to the risks
associated with the underlying BlackRock and iShares funds in which
each Portfolio invests. The target date in the name of the fund is
the approximate date when an investor plans to start withdrawing
money. The principal value of the fund is not guaranteed at any
time, including at the target date.
You should consider the investment objectives, risks, charges
and expenses of the BlackRock LifePath Portfolios carefully before
investing. Each fund’s prospectus and, if available, summary
prospectus contains this and other information about the portfolios
and is available, along with information on other BlackRock funds,
by calling 800-882-0052 or from your financial professional. The
prospectus and, if available, summary prospectus should be read
carefully before investing
©2016 BlackRock, Inc. All Rights Reserved. BLACKROCK,
iSHARES and LIFEPATH are registered trademarks of
BlackRock, Inc. its subsidiaries in the United States and
elsewhere. All other trademarks are those of their respective
owners.
GMC-0204
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Media:BlackRockFarrell Denby,
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