Diversified Retirement Fund

The Diversified Retirement Fund is a cost-effective solution for DC pension plans that seek to reduce market risk for members as retirement date approaches. It is a simple and robust solution for use as a stand-alone fund for members nearing retirement or within a lifestyle arrangement.

 

Objective

The fund is designed to be a component of a lifestyle strategy or as a self-select option for individuals nearing retirement.

Performance Expectation

To outperform the benchmark—a composite of 75% of an annuity price change index and 100% of the 3-month LIBOR index—by 0.5% per annum after fees.

Why The Diversified Retirement Fund Might Be Appropriate For You

The fund can replace the typical cash and bond components of a lifestyling strategy with a single fund and is aimed at members who will eventually purchase an annuity fund with 75% of their fund and a cash lump sum with the remaining 25%.

Key Points

  • Diversified retirement protection portfolio

  • Asset allocation oversight management

  • Can be white-labelled

  • Proactively managed to reduce volatility

  • Open architecture

  • Low cost, available from 25 basis points

  • Built-in flexibility

  • Utilises a mix of (external) passive managers

Strategic Asset Allocation

We proactively manage the asset allocation to meet the fund's objectives.

Strategic Asset Allocation

AB as at 31 December 2020 unless otherwise stated.

Past performance is no guide to future performance. The value of investments and the income from them can fall as well as rise and you may get back less than originally invested.

Related Resources

Flexible DC Solutions
Managing To Your Objectives
AB Target Date Funds Mission and Purpose
Making Target Date Funds Work For You