JPMorgan Chase & Co. has partnered with Lipper Inc. on a benchmarking tool for financial advisers, the banking company announced exclusively to InvestmentNews, a sister publication of Pensions & Investments.
Last September, New York-based JPMorgan rolled out Target Date Navigator, a tool for advisers that helps employers choose the right target-date funds, and starting this month, Lipper of New York will provide the research for the tool.
In using Target Date Navigator, employers answer five questions to help them choose the right types of target-date funds. The responses to the questions are analyzed by advisers to select the funds best-suited to the employer's needs.
There may be more need for this type of tool if target-date funds continue to be volatile, said Lynette DeWitt, a research director at Boston-based Financial Research Corp.
At year-end 2008, target-date asset levels had fallen to the mid-2007 market size of about $157 billion. The net inflows in the fourth quarter were $5.9 billion, down from $8.1 billion during the third quarter.
There were 45 target-date fund managers and 363 different funds at the end of last year, according to Ms. DeWitt.
"I think this tool is in the right place at the right time as we see more scrutiny (of target date funds)," she said.