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Factors, characteristics and the glide path
Jeb Bent
Investment Director

 


As the landscape of retirement investing continues to evolve, the need for more comprehensive and dynamic risk evaluation in target date glide path analysis has become increasingly apparent. Traditional glide path evaluators often focus on assessing risk through the lens of total equity and bond allocations. While this approach provides useful insights into a portfolio’s broad asset allocation, it can often miss the nuances associated with the different types of equities and bonds. Capital Group equity and multi-asset investment director Jeb Bent explores how factor analysis helps inform the evaluation of our Target Date Retirement Strategy and its glide path — and how it can offer a more granular view of risk.

Key takeaways:

  • Analyzing a strategy’s exposure to distinct equity factors and fixed income characteristics provides an additional perspective on target date positioning

  • Using a factor or characteristics perspective of a glide path can be additive for anyone seeking to better understand the various risks embedded within a target date solution for the purposes of analysis or comparison

  • Assessing factor and characteristics exposure can help with evaluating how well a target date strategy appears to be poised to meet evolving participant needs
     

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Jeb Bent is an equity and multi-asset investment director with 15 years of industry experience (as of 12/31/2023). He holds a bachelor’s degree in urban studies from Fordham University. He also holds the Certified Financial Planner certification and the Chartered Financial Analyst® designation.

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Target Date
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