ING Investment Management
] is upping its bet on target-date funds.
The mutual fund firm has filed with the SEC
for a new line of target-date funds available for sale to individuals and to IRAs, with a minimum investment of $250,000.
There will be nine new funds under the ING Retirement Solution
brand, eight funds built around specific retirement dates, and one retirement income fund. They will be available only in I Shares.
The prospectus doesn't list the fees ING will charge. The equity/fixed income ratios range from 95 percent equity for the furthest target dates and 65 percent equity for the nearest.
ING has the second biggest 401(k) platform in the country, and so it is apparently betting that the problems afflicting target date funds sold by DC I-O shops -- this year, Goldman Sachs
, and American Independence
all closed their TDF lines -- will not affect these offerings.
And they may be right. Our sister publication 401kWire reported
today that TDFs have found their way into over 68 percent of 401(k) plans, up 7 percent from a year before. And with the current wave of retiring baby boomers, there should be plenty of demand for TDFs.
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