The Forgotten Participant

In 2019, Invesco partnered with Greenwald and Associates, to better understand why DC plan participants invest the way they do.

We uncovered three key insights about participant investing behavior and preferences.

First, there is a significant subset of participants who prefer more control in building their own portfolios, and don’t view investing in a single target date fund as right for them.

Second, there is an appetite among these forgotten participants for a professionally managed solution tied to their investment risk profile.

And finally, we found there is a substantial interest among participants and plan sponsors for a dynamic risk profile tool to help with decision making.

To learn more about the research visit our website or contact your Invesco DC investment professional.

DISCLOSURES

FOR INSTITUTIONAL USE ONLY

All data as of September 30, 2019, unless otherwise noted.

In Canada, this material is restricted to accredited investors as defined by National Instrument 45-106. This material is provided to you for informational purposes only and may not be distributed or shared with others.

This information was prepared for US investors and may contain information that may be materially different for Canadian investors. These differences may affect suitability for Canadian investors, and these materials should not be relied upon by Canadians in making any investment decisions.

The opinions expressed are those of the authors, are based on current market conditions and are subject to change without notice. These opinions may differ from those of other Invesco investment professionals. The comments should not be construed as recommendations, but as an illustration of broader themes.

Cited Invesco research is based on Invesco’s work with Greenwald & Associates. Invesco is not affiliated with Greenwald & Associates.

A target-risk fund is a type of asset allocation fund that holds a diversified mix of stocks, bonds and other investments to create a desired risk profile. The fund manager of a target-risk fund is responsible for overseeing all the securities owned within the fund to ensure that the level of risk is not greater or less than the fund’s target-risk exposure. A target date fund identifies a specific time at which investors are expected to begin making withdrawals, e.g., Now, 2020, 2030. The principal value of the fund is not guaranteed at any time, including at the target date. Diversification does not guarantee a profit or eliminate the risk of loss.

All material presented is compiled from sources believed to be reliable and current, but accuracy cannot be guaranteed. This video is for informational purposes only and is not to be construed as an offer to buy or sell any financial instruments and should not be relied upon as the sole factor in an investment making decision. As with all investments there are associated inherent risks. Please obtain and review all financial material carefully before investing. Note: For more information on any of the topics discussed please contact your Invesco representative.

Invesco Distributors, Inc. is the US distributor for Invesco’s Retail Products and Collective Trust Funds. Invesco Advisers, Inc. provides investment advisory services and does not sell securities. Invesco Canada Ltd. is a Canadian investment management company. All are indirect, wholly owned subsidiaries of Invesco Ltd.

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