MPI Introduces Target Date Fund Analytics and Reporting

Summit, NJ - 4 March 2013

Tools for TDF Research, Comparison and Reporting Added to 401(k), DC Capabilities

Markov Processes International (“MPI”), a provider of superior tools for analyzing investment performance and risk, today announced the release of its Target Date Fund Analytics (“TDF Analytics”), an inventive solution for plan sponsors, their advisors and providers of this fast-growing product segment.

MPI’s TDF Analytics, including its distinctive Glide Path Analysis, were built for fund family research, investment selection, risk monitoring, fund replacement and reporting. The motivation for creating TDF Analytics stemmed from the frustration sponsors and their advisors expressed at the limited solutions available to clearly assess and visualize risk and return of TDFs against their peers, as well as a general lack of best practices around measuring the asset allocation mix. MPI’s TDF Analytics were developed to meet the needs of practitioners who strive to conduct comprehensive analysis of TDFs by measuring funds against a target date peer group, all while minimizing manual processes. MPI’s Glide Path Analysis uses current asset allocation holdings data, rather than the hypothetical equity exposure levels that appear in many TDF product prospectuses and fact sheets to detail the projected glide path.

With edifying reporting capabilities to better visualize the investment narrative against peers, including “Current vs. Proposed” reporting functionality, MPI’s solution can help investment professionals better understand TDF behavior compared to the complete range of options on the market. Additionally, asset managers can utilize MPI TDF Analytics to better position their products against the expanding universe.

“With nearly a half trillion dollars in AUM and continued annual growth of thirty percent, as well as new products being introduced at a rapid pace, the prevalence of target date and target risk offerings show no signs of abating. As such, it is crucial for sponsors, their advisors and asset managers themselves to make sense of an often confusing and increasingly saturated space. The need for utilizing the right performance and risk measures when assessing TDFs – and especially the ability to view products against the vast peer group – is essential to making appropriate investment decisions and allocations. With stark variations in glide path stability, performance and risk between fund families and within providers’ own offerings, we felt it was necessary to evolve the way these offerings are evaluated,” said Jeff Schwartz, Managing Director, MPI.

Embedded into both Stylus Web, MPI’s highly scalable web-based fund manager research and reporting tool, and Stylus Pro, MPI’s flagship product utilized across the wealth and investment management industry, MPI’s TDF Analytics were developed in close coordination with clients long-involved in TDF investing.

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