TARGET DATE Funds and Your Future www.proteusperformance.com

What are Target Date Funds? ‘ One-Stop’ diversified investment product designed to make saving for retirement easier Fund invests in multiple asset classes for diversification Asset mix adjusts according to the plan member’s investment time horizon or ‘target date’ www.proteusperformance.com

‘ One-Stop’ diversified investment product designed to make saving for retirement easier

Fund invests in multiple asset classes for diversification

Asset mix adjusts according to the plan member’s investment time horizon or ‘target date’

Why Consider Target Date Funds? Studies have shown most pension plan members are passive and will rarely re-visit their initial investments selections Over time the portfolio will gradually drift away from the intended asset mix Target Date Funds offer the simplification and automation many plan members desire www.proteusperformance.com

Studies have shown most pension plan members are passive and will rarely re-visit their initial investments selections

Over time the portfolio will gradually drift away from the intended asset mix

Target Date Funds offer the simplification and automation many plan members desire

How Do Target Date Funds Work? Plan member chooses fund with ‘target date’ closest to their retirement date For example, a plan member at age 40 may choose the 2035 fund if he or she plans to retire at age 65 As time progresses, the fund automatically adjusts the asset mix, making it more conservative by increasing less risky (but lower yielding) fixed income for higher risk (but higher return potential) equities. www.proteusperformance.com

Plan member chooses fund with ‘target date’ closest to their retirement date

For example, a plan member at age 40 may choose the 2035 fund if he or she plans to retire at age 65

As time progresses, the fund automatically adjusts the asset mix, making it more conservative by increasing less risky (but lower yielding) fixed income for higher risk (but higher return potential) equities.

The Glide Path The asset allocation track over time is referred to as the Glide Path Source: McLean Budden www.proteusperformance.com

The asset allocation track over time is referred to as the Glide Path

Investor Risk Profile Plan Members may have different risk tolerances A knock against target date funds is that they do not take risk profiles into account More recently, funds are being offered that address both the member’s time to retirement and risk tolerance (conservative vs. aggressive) www.proteusperformance.com

Plan Members may have different risk tolerances

A knock against target date funds is that they do not take risk profiles into account

More recently, funds are being offered that address both the member’s time to retirement and risk tolerance (conservative vs. aggressive)

Evaluating Target Date Funds Considerations for selecting a target date fund family include: Is the retirement fund’s asset mix appropriate / does it change over time? Does the retirement fund include a real return component? Does the fund use active or passive management or a mix of both where optimal? Does the fund employ “best-of-breed” specialty investment management? www.proteusperformance.com

Considerations for selecting a target date fund family include:

Is the retirement fund’s asset mix appropriate / does it change over time?

Does the retirement fund include a real return component?

Does the fund use active or passive management or a mix of both where optimal?

Does the fund employ “best-of-breed” specialty investment management?

Contact Us To learn more please contact us: Proteus Performance Management Inc. Toronto, Ontario Canada Phone: 416-421-3557 Fax: 416-421-1348 Email: [email_address] www.proteusperformance.com

To learn more please contact us:

Proteus Performance Management Inc.

Toronto, Ontario Canada

Phone: 416-421-3557

Fax: 416-421-1348

Email: [email_address]