MONTREAL, Jan. 24 2007 – Standard Life announced today the launch of Model Dynamic Portfolios, the first product of its kind in Canada that combines the benefits of target-year and lifecycle funds.
The Model Dynamic Portfolios offer an innovative approach to investment selection for members of group plans, along with tools for sponsors to improve plan governance.
For members
Model Dynamic Portfolios offer members of group plans a straightforward approach to investing for retirement by matching risk profiles with investment periods, while maintaining an appropriate asset mix over time. To choose a portfolio, members simply “Pick & Click” the investment mix best suited to them. Assets are automatically adjusted as members age and rebalanced quarterly to remain aligned with the investment mix.
“In the last few years, the marketplace has seen an upsurge in the number of target-year and lifecycle funds. These invest towards an anticipated retirement date or according to an investor’s risk profile, but neither product takes both factors into account,” says Anthony Cardone, Senior Vice-President, Group Savings & Retirement, at Standard Life. “The Model Dynamic Portfolios overcome the limitations of target-year and lifecycle funds by investing for both time and risk level.”
For plan sponsors
“With the vast array of investment funds in the marketplace, Model Dynamic Portfolios are especially appealing to plan sponsors who want to offer their members a simple and straightforward menu of investment options, tailored to the needs of members, that evolves over time,” adds Mr. Cardone. “Investment mix options are available to plan sponsors off-the-shelf or they can be customized. Model Dynamic Portfolios are the natural evolution of the sample investment mixes Standard Life already offers many of its plan sponsors, and the numbers prove that relatively few members are choosing the default investment option.”
Standard Life’s new Model Dynamic Portfolios feature semi-annual reports that make it possible for plan sponsors to better monitor investment behaviour in terms of the number of members invested in each portfolio, investment behaviour by age range and the ratio of members who opted for the default investment option. With this type of information readily available, plan sponsors are better able to design and adjust their programs to meet the evolving needs of their members.
“Model Dynamic Portfolios offer members ease of choice-and plan sponsors peace of mind-in knowing they have provided their members with a clear menu of options,” says Teresa Morgan, National Director, Member Services, Group Savings & Retirement. “Members choose a mix based on their tolerance for risk and how close they are to retirement. This mix adjusts for investment risk as the member ages while respecting the member’s investor profile.”
About Standard Life
The Standard Life Assurance Company of Canada is a major investment, retirement and financial protection company. Along with its affiliated companies in Canada, as of June 30, 2006, The Standard Life Assurance Company of Canada had $34.5 billion in assets under management and offered a wide range of financial products and services to over 1.31 million individuals, including group insurance and pension plan members. Total premium income and deposits reached $5.2 billion in 2005. Standard Life has been a prominent player in the Canadian marketplace since 1833. (www.standardlife.ca)
The Standard Life group is a leading provider of financial products and services, with approximately 7 million customers worldwide. As of June 30, 2006, its investment management business had $254 billion in assets under management. Founded in Edinburgh (Scotland) in 1825, The Standard Life Assurance Company became a mutual life insurance company in 1925. Following overwhelming support by voting members and subsequent approval from the Court of Session in Scotland, the Company demutualized and a new public company – Standard Life plc – was born. Standard Life plc was listed on the London Stock Exchange (LSE), under the ticker symbol or code SL., on July 10, 2006. (www.standardlife.com)
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