Pimco Adds Riskier Assets to Bolster Target-Date Funds

Pimco Adds Riskier Assets to Bolster Target-Date Funds
News from BusinessWeek:

Invesco Ltd. (IVZ) and Pacific Investment Management Co. are adding riskier assets and complicated strategies in target-date funds as they seek to gain ground on Fidelity Investments and Vanguard Group Inc. in this fast- growing segment of the U.S. retirement market.

While sellers promote the funds as a simple choice for people who don’t want to pick their own investments and rebalance them, money managers are using inflation hedges and derivatives to bolster returns. That broadening doesn’t address target-date funds’ main issues: uneven returns, higher expenses and an inability to provide for individual retirement needs, said Bob Pozen, a senior lecturer of business administration at Harvard Business School and former chairman of MFS Investment Management.

Target-date mutual funds hold a mix of assets that become more conservative as employees age, which is why employers favor them when automatically enrolling workers in 401(k) retirement plans. Investments in the funds have swelled more than 380 percent since 2005 to about $ 343 billion as of September, according to the Investment Company Institute, a Washington- based trade group for the mutual-fund industry.

“Some people are losing sight of the risk-management goal by adding all these additional asset classes,” said Jim Lauder, chief executive officer of Global Index Advisors, wh…………… continues on BusinessWeek

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Neptune Investment Novices’ Hurdle tips
News from Can Simonsig strike at Cheltenham? – Cheltenhampro.com:

Barry Geraghty riding Simonsig clear the last to win The Redstone ‘National Hunt’ Novices’ Hurdle Race at Ascot racecourse on November 18, 2011 in Ascot, England. (Photo by Alan Crowhurst/Getty Images)

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With Willie Mullins opting to wait until Friday to run Boston Bob, Nicky Henderson’s Simonsig (5/2, Paddy Power) has shot the head of the betting for the Neptune Investment Novices Hurdle.

The favourite has looked very classy in all three of his starts this season, only going down to Fingal Bay amidst a trio of impressive performances.  Last seen cruising to victory at Kelso, the worry with Simonsig is that it looks like he might find very little when he hits the daunting hill at Cheltenham.

Henderson’s horse has arriv…………… continues on Can Simonsig strike at Cheltenham? – Cheltenhampro.com

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