Wells Fargo fund tracks DJ's target-date indices

FWR Staff

9 July 2006

Sophisticated new retirement fund becomes more conservative as owners age. Wells Fargo has launched the first-target date mutual fund that tracks the performance of the global series of the Dow Jones Target Date Indexes.

"With the introduction of an advanced methodology to the funds' allocation strategy, we believe we are improving on that foundation by offering shareholders both a more sophisticated investment approach and broader diversification," says Andrew Owen, senior v.p. of investments for Wells Fargo Funds Management.

Slows with age

Target date funds - which become more conservative as their owners approach retirement age - aren't new. Wells Fargo itself has been peddling them since 1994. But the new fund offers "a sophisticated risk allocation strategy and greater diversification," according to a press release.

Michael Petronella, president of Dow Jones Indexes, says the Target Date Index series is the first to benchmark 'lifecycle' funds, with risk profiles that become more conservative over time. "Wells Fargo's adoption of these transparent and rules-driven indexes is validation of our pioneering efforts in this index space," he says.

Doug Murray, senior v.p. of client delivery services for Wells Fargo Institutional Trust Services, says that "increased use of target date funds will help more of America's workforce get on the road towards retirement readiness." -FWR