JPMorgan upgrades Target Date Compass
01 May 2014 | 1702 views | 0
J. P. Morgan Asset Management is announcing a major upgrade to Target Date CompassSM, the groundbreaking tool that advisors use to help plan sponsors make informed target date fund selections.
The new Target Date Compass has expanded analytics, a more intuitive design, simplified charts and a tablet-friendly interface. Together, these enhancements make Target Date Compass an even more indispensible resource for the timely, accurate and prudent analysis of the ever-changing target date fund universe.
First introduced in 2008, Target Date Compass quickly set the standard for helping defined contribution plan sponsors evaluate the critical differences among target date funds. Powered by data from Morningstar — an unbiased, trusted source of fund research — the enhanced Target Date Compass continues to help plan sponsors determine which target date funds fit their plans' goals.
Thousands of advisors use Target Date Compass to help their plan sponsor clients narrow the growing array of fund choices. The program asks plan sponsors to consider important plan criteria including objectives, risk tolerance, demographics and expected participant behavior. Based on their answers, plan sponsors are directed to one of four areas on the Target Date Compass "Quadrant Map." This allows plan sponsors to concentrate on a group of funds that are likely to match the plan's goals and objectives.
"More than anything, Target Date Compass aims to facilitate the critical conversations that plan sponsors need to have with their advisors about which target date funds are right for their participants," said Catherine Peterson, Global Head of Insights Programs at J.P. Morgan Asset Management. "These conversations, along with custom reports from the Target Date Compass, are likely to have a critical impact on the fund selections that plan sponsors ultimately make."
The need for such a program is more critical than ever. Not only do target date funds represent 70 percent of net new flows into defined contribution plans, according to Callan Investment Institute, but this growth has led to a multiplicity of fund choices, making decisions for plan sponsors even more complex.e complex.
Just as important is how this innovative program can help plan sponsors meet or exceed their fiduciary responsibilities for target date fund evaluation and selection. "In a world of evolving target date fund strategies, it's not only critical for plan sponsors to make prudent target date fund selections, it's also a legal requirement," said Michael Falcon, J.P. Morgan Asset Management's Head of Retirement. "Offering such a program is just one of the many ways that J.P. Morgan can help plan sponsors and their advisors make more-informed decisions."