is readying target date funds that come with a twist -- they will protect shareholders from losses. The batch of target-date funds will seek to preserve the highest month-end net asset value attained by each fund during its life span, according to an SEC filing
The ABN AMRO Target Horizon 2011
, Target Horizon 2013
, Target Horizon 2016
and Target Horizon 2021
will offer class A and C shares to investors. ABN AMRO did not specify fund expenses in the filing.
Mark den Hollander, Laurens Visser, Sergey Pergamentsev and Marina Loscheva will serve as portfolio managers for the funds, each of which will hold a portfolio made up of an equity component, a fixed-income component and cash equivalents.
What will make the funds unique is the provision that would protect shareholders from losses by preserving the funds month end NAV as a high watermark for each period.
While there are a number of pure fixed income and equity funds that over similar promises to investors, this appears to be the just the second time a fund firm is applying this promise to a target date fund. The first was AIG's High Watermark funds.
This type of fund (without the promise) is currently a hot seller in the retirement savings market and inside of 401(k) and other defined contribution plans.
ABN AMRO only plays on the investment-only side of the defined contribution business, having sold its recordkeeping and administration business The Principal.
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