Toronto-based Vanguard Investments Canada Inc. has introduced Target Retirement 2060 and 2065 Pooled Funds to qualified Canadian institutional investors, including plan sponsors.
Vanguard now offers a total of 12 target-date funds in Canada, ranging in retirement years from 2015 to 2065, in five-year increments. These target retirement funds, which invest in indexed pooled funds, shift to a more conservative asset allocation gradually and automatically as the target date approaches. Both of the new funds have an asset allocation of 90% equities and 10% fixed-income.
“Plan sponsors and institutional clients are looking for broad-based and low-cost investment strategies to serve the needs of plan participants, including younger investors,” says Jason McIntyre, head of distribution for Vanguard Canada. “These funds provide age-appropriate asset allocation in a simple yet sophisticated and low-cost solution for retirement investing.”
Vanguard Canada’s parent firm, Malvern, Penn.-based Vanguard Group Inc., has offered target retirement funds in the U.S. since 2003 and now manages more than US$500 billion of target-date assets.