Capital Research to offer target-date funds; American Funds Target Retirement Series spurred by Pension Protection Act passage.(Capital Research and Management Co.)

Pensions & Investments, December, 2006 by O'Donnell, Kathie

Byline: Kathie O'Donnell LOS ANGELES - Capital Research and Management Co., which long has resisted calls from retirement plan sponsors and others to offer target-date retirement funds, plans to do just that early next year. Although the funds are unlikely to steal major assets from established players, they'll offer stiff competition to other newcomers, experts said.

Capital Research plans to roll out nine target-date funds in February, pending regulatory approval. Offered through CapResearch's American Funds mutual fund family, the new American Funds Target Retirement Series funds are targeted to retirement dates in five-year increments from 2010 to 2050. Each will use American's funds as the underlying investments. American Funds is being pushed into...

Read the rest of this article with a Free Trial at HighBeam Research.

Premium Content Partnership | HighBeam Research provides an in-depth online archive library of reference works.