Income & Customization
Specialized solutions to meet unique participant needs or create guaranteed retirement income
- Meets the unique needs of larger DC plans
- Leverages off-the-shelf funds, additional asset classes, or open architecture
- Offers specialized solutions designed to provide guaranteed income at retirement
LifePath's philosophy and process incorporates the latest financial behavioral, economic and demographic research into its glidepath. The result is a target date fund suite that meets the needs of the large majority of participants. The same process and philosophy can also be used to meet the special target date fund needs of large DC plans.
Plans with unique participant demographics, special investment needs or significant participation in a traditional defined benefit pension plan may want to explore customized approaches that may leverage off-the-shelf funds, additional asset classes, even open architecture. Our investment strategies team can work with plan sponsors to perform a customization analysis.
Traditional sources of retirement income, such as defined benefit pensions or social security, play a shrinking role in the retirement expectations of today's participants. That's why BlackRock has pioneered a target date fund approach that substitutes an annuity pool for the fixed income allocation. As the participant nears retirement, their share of the institutionally priced annuity grows, providing a stream of guaranteed lifetime income at retirement.
BlackRock's 2011 Retirement Survey shows a clear correlation between secure retirement income streams and participant confidence about retirement.
The LifePath Funds may be offered as mutual funds. You should consider the investment objectives, risks, charges and expenses of each fund carefully before investing. The prospectuses and, if available, the summary prospectuses contain this and other information about the funds, and are available, along with information on other BlackRock funds, by calling 800-882-0052 or from your financial professional. The prospectuses and, if available, the summary prospectuses should be read carefully before investing.
Each LifePath Portfolio mutual fund invests all of its assets in a separate mutual fund, called a LifePath Master portfolio, that has a substantially identical investment objective as the LifePath Portfolio. Each master portfolio, in turn, invests in a combination of equity funds, fixed income funds, and money market funds ("Underlying Funds") in proportions based on its own comprehensive investment strategy. BlackRock Fund Advisors is the investment adviser to the Master Portfolios and each of the Underlying Funds.
The LifePath Portfolio mutual funds are distributed by BlackRock Investments, LLC ("BRIL"), member FINRA. BlackRock Fund Advisors ("BFA") serves as the investment adviser to LifePath Portfolio mutual funds, and the Master Portfolios, in which each LifePath Portfolio invests all of its assets and to the Underlying Funds in which the Master Portfolios invest.
Strategies may include bank collective investment funds maintained and managed by BlackRock Institutional Trust Company, N.A. ("BTC"), which are available only to certain qualified employee benefit plans and governmental plans and not offered or available to the general public. Accordingly, prospectuses are not required and prices are not available in local publications. To obtain pricing information, please contact your local service representative. Strategies maintained by BlackRock are not insured by the Federal Deposit Insurance Corporation and are not guaranteed by BlackRock or its affiliates. There are structural and regulatory differences between collective funds and mutual funds that may affect their respective fees and performance.
BRIL, BFA and BTC are subsidiaries of BlackRock, Inc.
Each LifePath Portfolio has a different level of risk.
An investment in the LifePath Portfolios is subject to stock market risk, which means the price of the stocks in which the Underlying Funds invest may fluctuate or fall in response to economic events or trends. The prices of bonds in which the Underlying Funds invest may fall because of a rise in interest rates. Investments in foreign securities by the Underlying Funds are subject to certain special risks and considerations, including potentially less liquidity and greater price volatility than securities traded in the U.S. markets.
The allocation of each LifePath Portfolio's assets is managed using a quantitative model that has been developed based on a number of factors. There is no assurance that the recommended asset allocation will either maximize returns or minimize risk or be the appropriate allocation in all circumstances for every investor with a particular time horizon.
The LifePath Portfolios must maintain cash balances to meet redemption requests, which may lower overall portfolio performance.
The LifePath products are covered by U.S. patents 5,812,987 and 6,336,102.