Our non-linear glide path helps mitigate risk

CI LifeCycle Portfolios are based on the belief that a thoughtfully calibrated non-linear glide path, strategic forecasts, and broadly diversified exposure within asset classes are all key elements of a well-designed target date solution to help pension plan participants achieve their retirement goals.

The four key risks faced by pension plan participants

CI LifeCycle Portfolios' glide path is designed to address the most common risks that pension plan participants face when investing for retirement: shortfall, market volatility, inflation and longevity. Higher levels of growth are targeted when participants' time horizon is long and can better weather short-term market ups and downs. Then, as they get closer to or enter retirement and wealth preservation is increasingly important, the program has an increased emphasis on managing volatility and inflation while achieving moderate levels of growth.

CI manages the glide path by adjusting the mix of equity and fixed income over time. Additionally, based on SSGA research, we take it one step further by changing exposure to key sub-asset classes. Both moves are designed to create a more efficient portfolio. As a result, participants' investments may benefit from reduced risk and the potential to maximize returns over time.

 

Target date glidepath construction: optimal at all points