J.P. Morgan Reinvents Target Date Fund Communications
-- a suite of innovative educational materials and website,
www.jpmorgansmartretirement.com, strives to demystify target date funds --
NEW YORK, July 31, 2013
NEW YORK, July 31, 2013 /PRNewswire/ --J.P. Morgan Asset Management today
announced that it has launched a new communications program designed to
deliver a simplified explanation of its SmartRetirement series of target date
funds, using easy-to-understand terminology supported by animation and
Industry studies continue to show that many participants lack basic knowledge
on how target funds work – key ideas like what the date in the fund name
actually means, the fact that the funds are already fully diversified and that
target date funds do not provide guaranteed income in retirement.
To solve this gap in understanding, many firms want to provide more
information to participants. However, based on the firm's recent participant
research, 75% of participants say they don't take the time to read all of the
investment information that is currently provided to them. Also, 44% say they
are already getting more information than they can absorb. This is likely part
of the reason many participants don't understand what they are invested in –
including target date funds.
J.P Morgan sought to address the knowledge gap as well as the communication
approach with its new program and is making it available to all J.P Morgan
SmartRetirement clients regardless of the recordkeeper servicing their plan.
"Research has shown that while defined contribution plan participants want
access to target date funds for retirement savings, they do not understand
some of the most basic components of how target date funds work," said
Catherine Peterson, Director of Retirement Insights at J.P. Morgan Asset
Management. "Given the growing importance of target date funds in plans, we
developed this program to specifically address identified participant
The program features a full suite of educational resources to support their
SmartRetirement clients - helps clarify what target date funds are, how they
work and how to choose a SmartRetirement Fund. The program takes a fresh
approach in trying to address these points. At the same time, it is structured
to be accessible to different types of investors – the "do-it-for-me"
investors, who want only the very basics, and the "do- it- yourselfers" who
are looking for that extra level of detail. This innovative approach aims
to present the material in simple, easy-to-understand language, arming
participants with clear information around investing in target date funds.
For those trying to make a decision about target date funds, it helps them
quickly understand if this solution may be right for them and how to select a
fund. And for those participants that have been defaulted into the target date
appropriate for their age, it helps them understand what they are invested in.
The program includes a dynamic website, featuring an animated video
explaining how a glide paths works, thoughts from employees invested in target
date funds or thinking about getting started investing in target date funds
and a closer look at the detailed asset allocation by vintage. An
infographic-style brochure and product profiles also provide an explanation of
key elements presented in an easy-to-understand way.
"Considering the critical role that target date funds play in 401(k) plans and
successful retirement outcomes, we think it is very important for plan
sponsors to think about how these best practices can be applied to participant
communications. It's time to raise the bar on target date fund communications
and ensure that the industry is taking every opportunity to educate and inform
in a way that is accessible and understandable to all investors," said
To experience how J.P. Morgan is demystifying target date funds, visit:
About J.P. Morgan Asset Management – Retirement
J.P. Morgan Retirement, with defined contribution assets under management of
$85 billion, is a leading comprehensive retirement solutions provider
dedicated to improving individual retirement outcomes. J.P. Morgan Retirement
Plan Services provides bundled recordkeeping services to more than 650 clients
and 2 million plan-level participants, representing more than $158 billion in
retirement plan assets (as of June 30, 2013).
About J.P. Morgan Asset Management
J.P. Morgan Asset Management, with assets under supervision of approximately
$1.9 trillion and assets under management of $1.5 trillion (as of 6/30/13), is
a global leader in investment management. J.P. Morgan Asset Management's
clients include institutions, retail investors and high-net worth individuals
in every major market throughout the world. J.P. Morgan Asset Management
offers global investment management in equities, fixed income, real estate,
hedge funds, private equity and liquidity. JPMorgan Chase & Co. (NYSE: JPM),
the parent company of J.P. Morgan Asset Management, is a leading global asset
management firm with assets of approximately $2.1 trillion and operations in
more than 60 countries. Information about JPMorgan Chase & Co. is available
J.P. Morgan Asset Management is the marketing name for the asset management
businesses of JPMorgan Chase & Co.
SOURCE J.P. Morgan Asset Management
Contact: Kristen Chambers, 212-622-4111, firstname.lastname@example.org
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