Tool Helps Plan Sponsors Choose TDFs

The tool set is designed to help advisers guide plan sponsors through the target-date fund selection process and make prudent selections for their plans. The tool, which is powered by PlanTools, provides detailed analytics for more than 35 unique fund series.

“Target-date funds are still a relatively new investment category and are often misunderstood,” said Glenn Dial, head of retirement sales at the New York-based Allianz Global Investors Distributors. “With this in mind, our new web-based tool aids advisers as they guide plan sponsors through the target-date fund universe, and ultimately, select a fund that suits their plan’s needs.”

The tool features an online questionnaire and a competitive analytical report that helps systematically evaluate which target-date fund meets a plan’s goals. The questionnaire highlights key considerations for choosing “to” versus “through” target-date funds, and helps document the target-date fund selection process to fulfill plan sponsors’ fiduciary obligations.

Once the questionnaire is completed, the results are scored and interpreted. Advisers and plan sponsors are then able to generate an analytical report comparing target-date fund families that most closely meet the needs of the plan. The report highlights elements that are unique to target-date funds, such as glide path comparisons, number of underlying investment managers, exposure to inflation protection, and risk profiles by vintage.

The tool can be accessed here.

Allianz Global Investors are diversified active investment managers with $409 billion in assets under management.