Vanguard Group filed a registration statement Monday with the Securities and Exchange Commission for five new portfolios in its Target Retirement Fund family.
The portfolios are a series of diversified fund-of-funds that gradually reduce stock exposure and increase bond exposure as the targeted retirement date approaches. The funds are to feature target retirement dates at 10-year intervals from 2010 through 2050 and are intended to complement Vanguard's six existing target date funds, five of which target 10-year intervals from 2005 through 2045, and including the Vanguard Target Retirement Income Fund.
John J. Brennan, Vanguard's chief executive officer, said introducing the five new portfolios will enable investors to select funds that more closely match their investment time horizon.
Vanguard also announced it is changing the asset allocation models of its existing Target Retirement Funds to increase exposure to equities for longer periods. The result will be to increase the equity allocations by 10 to 20 percentage points, depending on the portfolio.
The Malvern, Pa., company had $960 billion under management at Feb. 28. The already existing target date funds had grown to more than $10 billion of assets since being started in 2003. The five new portfolios will require a minimum initial investment of $3,000.
