WALK THE PRUDENT PATH

Welcome to target date 3.0

Prudent Path

Target date funds have been increasing in popularity since their introduction in the early 1990’s. The idea that an individual can make one simple choice and be afforded a portfolio which automatically glides from aggressive to conservative according to a specific date sounds ideal. So ideal that by 2007 it became customary for investors to automatically default into these investment vehicles based on one criteria: their date of birth. But what happens when the financial markets move in different directions?

PROS & CONS

PROS & CONS

Risk Based

PROS
Alleviates One Size Fits All
Personalized
Simplicity
Widely Accepted
CONS
Static
Requires Discipline
Requires Periodic Revisit
Accountability

Target Date

PROS
One Size Fits All
Widely Variable
Equity Exposure Diminishes
Hope for Bull Market Early
CONS
Managed for You
One Stop Shop
No Guesswork
More Conservative Over Time

Strategic

PROS
 Maximize Market Exposure
Global Diversification
Academically-based
Low Cost
CONS
Markets Will Move
Requires Discipline
Shakeouts Occur
Investor Accountability

Tactical

PROS
 Downside Protection
Peace of Mind
Institutional Mindset
Active Management
CONS
 No Crystal Ball
Hard to Get Back In
Susceptible to Noise
Expensive

 

PROS
Alleviates One Size Fits All
Personalized
Simplicity
Widely Accepted
CONS
Static
Requires Discipline
Requires Periodic Revisit
Accountability

 

Prudent Path

download brochure

3D Asset Management has partnered with Newfound Research to approach target date fund construction and management in a unique way.

NewFound Research

 

3D Asset
Management

Founded in 2006, 3D Asset Management is an independent global investment manager who partners with financial advisors to deliver the benefits of Exchange-Traded Funds (ETFs) to individual investors and retirement plan participants. Through rigorous portfolio construction and monitoring, 3D builds diversified portfolios that attempt to control cost, manage risk and simplify global investing. 3D enables financial advisors to more efficiently manage client relationships by providing effective and value-creating solutions.

Newfound
Research

Founded in August 2008 when data from their models was first licensed, Newfound Research is a Boston-based registered investment adviser and quantitative asset manager focused on rules- based, outcome-oriented investment strategies and specializing in tactical asset and risk management. Newfound pioneered the research and use of dynamic, volatility-adjusted momentum models. In the last five years, Newfound’s models have been utilized to help drive the investment decisions for billions of dollars in assets.

 

Founded in 2006, 3D Asset Management is an independent global investment manager who partners with financial advisors to deliver the benefits of Exchange-Traded Funds (ETFs) to individual investors and retirement plan participants. Through rigorous portfolio construction and monitoring, 3D builds diversified portfolios that attempt to control cost, manage risk and simplify global investing. 3D enables financial advisors to more efficiently manage client relationships by providing effective and value-creating solutions.

Our Strategy

Our Strategy

As with most target date funds, our glide path becomes more conservative over time. Unlike a traditional target date fund, PrudentPath™ provides for tactical shifts across the strategically allocated base glide path. This flexibility is incorporated with the goal of limiting negative performance when equity markets are declining for an extended period, such as in 2008.

Prudentpath Allocations

Prudentpath Allocations

 

Aggressive

Conservative

 

Prudent Path

download brochure

Take a deeper dive into the PrudentPath strategy.