Payden & Rygel
wants to get in on the target date retirement fund game, but with a twist. According to an N-1A
filed Friday with the SEC, the Los Angeles-based firm has designed four new funds of funds that invest in ETFs and individual stocks and bonds, as well as a number of other Payden equity and fixed income mutual funds. Wilshire Associates
will serve as the sub-advisor for the new fund family, the Payden/Wilshire Longevity Funds
. If the SEC approves the proposal, Payden hopes to release the funds at the end of August.
The four funds appear to be the first so-called lifecycle funds to mix regular mutual funds with individual securities and ETFs.
All four funds -- the Payden/Wilshire Longevity Fund 2010+
, the Payden Wilshire Longevity Fund 2020+
, the Payden/Wilshire Longevity Fund 2030+
and the Payden/Wilshire Longevity Fund 2040+
-- would carry an initial total annual operating expense ratio of 140 basis points. Wilshire has chosen vice president Cleo Chang
to serve as the funds' portfolio manager.
While Payden itself will distribute the funds, Treasury Plus will serve as the funds' administrator, Mellon Trust of New England as the custodian, UMB Fund Services as the transfer agent, Deloitte & Touche as the outside accountants and Paul, Hastings, Janofsky & Walker as legal counsel.
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