Ready Built Target Date Funds

Our range of packaged target date funds – Retirement StrategiesSM – offers an economical way to provide a diversified and risk-managed default. An age-appropriate diversified growth portfolio of primarily passive funds designed to progressively de-risk as a member approaches their expected retirement date.

A Default Solution With Target Date Approach Benefits

Retirement StrategiesSM is for trust-based and contract-based pension schemes that want the benefits of a target date approach for their default investment strategy.

It’s a cost-effective answer for sponsors who need a robust and low-maintenance solution that works in the best interests of members irrespective of the platform they choose to use.

Each fund in the range has its own specific glidepath and members are typically invested in the fund with their expected retirement window in its name. That means each member’s investments are managed in a single fund wrapper throughout their accumulation phase – effectively providing a single retirement savings solution for the lifetime of the members career.

AB’s Packaged TDF Range

The Benefits

Each glidepath is proactively managed to be dynamically market-aware.

This ensures that each fund is on target to meet the specific objective aligned to the needs of the members, dynamically allocating assets that help to guard against drawdown risk.

Active allocation is made to primarily passive underlying funds.

This ensures that costs are kept low, plus currency hedging is used to manage exchange rate risk.

Our open architecture approach enables us to select funds from across the whole market.

This ensures we can allocate to what we believe are the best funds for the job and build in greater diversification. 

Simple To Use

With AB TDFs, we do the heavy lifting within the Funds, freeing up time and resource for trustees and scheme managers to focus on where they can add the most value: governance.

The AB TDF range is:

  • Kept fully up-to-date with changes in regulation

  • Proactively managed to grasp new opportunities in the market

  • Evolved over time using global investment insights combined with proprietary member survey learnings to maintain alignment with member’s needs.

Value For Money

  • Low cost investments: we use primarily passive components within our standard packaged strategy

  • Streamlined administration: using the minimum number of fund holdings reduces member transaction costs and scheme administration costs, with only one accounting record per member

  • Simple proposition: our intuitive approach reduces trustee and scheme manager communication costs, and keeps members’ investments up-to-date as a matter of course

  • Outsourcing to experts: reduces governance costs, and makes for a clear allocation of roles and responsibilities between investment managers and trustees/scheme managers and their consultants

  • Comprehensive reporting package: reduces time and resource allocated to regulatory reporting by providing full transparency into performance and costs

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