Is quest for income old-fashioned alchemy or magic elixir? Companies mull ways to offer guaranteed income.(Mutual Fund Report)

Investment News, May, 2007

Byline: Kathie O'Donnell

BOSTON - The Charles Schwab Corp., T. Rowe Price Group Inc. and OppenheimerFunds Inc. are among firms exploring ways to add a guarantee to life cycle funds - providing investors with an income stream in retirement.

Life cycle, or target date, funds grow more conservative and produce more income as the so-called target date approaches. Target date fund assets totaled $133 billion as of March 31, up from $70.2 billion at the end of 2005, according to Boston-based Financial Research Corp.

A "check the box'' solution for investors in their retirement years is on the drawing board at San Francisco-based Schwab, said John Sturiale, who manages the Schwab Managed Retirement Trust Funds, which include five target date...

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