UAM Investment Services
is making its new UAM Dwight Capital Preservation Portfolio
available to IRA investors through major fund supermarkets, the Boston fund company announced today.
UAM is planning on using the fund to retain rollover and retirement assets said Laura Dagan, managing director of Dwight Asset Management. "Even if a person has been more aggressive with their investing, they might want to be start being more conservative."
In addition the company is looking on offering a stable value employee benefits plan targeting the 403(b) market. UAM hopes to register the product this week and make it available by the end of the year, Dagan said.
Fee structures aren't finalized yet but they will be capped at 100 basis points. "What distinguishes us is the redemption fee. It is very simple -- .25% for shares held less than 12 months.," said Dagan.
The decision to list with the major platforms was based on the fact that it would be difficult to sell the funds if it wasn't, Dagan said.
A stable value fund can provide an investor with both the stability of money market fund with potential of high returns making it an especially interesting product to retirees.
As the baby boomer population ages, more and more 401(k) providers are looking for ways to keep participants' assets. The stable value fund has not been very popular historically but there is an increasing demand.
Borden Ayers, principal atDiversified Services Group
said stable value funds might be a way for 401(k)s to retain assets but, "you have to look at the whole picture if you are going to address the needs of retirees. The issue is retirement counciling. Each individual situation is unique enough to warrant financial planning."
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