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Contact: Morrison Shafroth
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MANAGEMENT OF TARGET-DATE FUNDS GETS A BOOST FROM GRAVITY INVESTMENTS
Portfolio Managers Gain Better Control of Glide Path with Industry's First Three-Dimensional Diversification Platform
DENVER, CO-July 12, 2009-Gravity Investments (Gravity), a premier financial engineering firm responsible for the Gsphere visual asset allocation platform, has announced that the firm's True Diversification optimization system bolsters the performance of target-date mutual funds.
Target-date funds are currently under scrutiny by Congress as a result of significant performance issues last year, particularly among a number of shorter-maturity offerings. According to the SEC, the average loss in 2008 among 31 target-date funds with a 2010 retirement date was almost 25%.
"While the Gsphere Diversification Platform is designed to help managers protect against the downside, we know that diversification optimization also adds to the upside," said James Damschroder, Founder of Gravity Investments and inventor of the Gsphere process. "Both of these benefits have been too-often missing in the set-and-forget strategies."
The calculation and supervision of target-date 'glide paths' is likely to face increasing examination from regulators, creating an even greater need for comprehensive control of target-date products. Gsphere, Gravity's three-dimensional diversification platform, is an advanced analytic suite that delivers portfolio optimization through methodology Gravity calls "holistic portfolio visualization". The firm was awarded a patent for its process earlier this year.
"The inability to measure diversification, at least the way we conceive it, has put undue pressure on portfolio managers responsible for the performance of target-date funds," said Damschroder. "True Diversification provides the necessary analytic tools to deal with this shortcoming in an effective manner."
Gravity's innovative approach will benefit virtually every sponsor of investment product, including broker/dealers, RIAs, insurance companies, mutual fund companies, hedge funds, pension plans, bank trust groups, 401(k) providers, fund consultants, family offices, foundations, and endowments.
About Gravity InvestmentsGravity Investments, the worldwide leader in Diversification Intelligence, is a leader in financial engineering and investment technology. A Denver-based firm, Gravity's Gsphere Portfolio Analysis Platform bridges the gap between traditional asset allocation and diversification optimization, providing clients an unparalleled ability to manage and market investments. For more information on Gravity Investments please visit gravityinvestments.com or call 877-254-6024.