01
Intelligence
We know retirement plans, fiduciary process, and Morningstar data. The questions the Analyzer asks and the pages it prints come from that knowledge, not from a template.
Target Date Analyzer · Built with Principal Financial Group
More than $75 billion in new target date assets, from software we built.
The Target Date Analyzer is a platform PlanTools designed, built, and runs with Principal Financial Group. Advisors use it to profile a plan, compare target date series on Morningstar data, and hand the committee a report built for the fiduciary file. It has driven more than $75 billion in new assets into Principal’s target date funds.
- $75B+
- New assets into Principal’s target date funds
- 5
- Profiler questions
- 10
- Report sections
- 2
- PDFs for the fiduciary file
The software factory
An industry-leading tool, built the way we build our own.
Principal didn’t buy a license and re-label it. They worked with the team that writes PlanTools, and got a platform of their own, on our engine, at the pace of a product team.
02
Experience
PlanTools has built retirement plan software in house since 2009. Principal got the team that builds our own platform, and everything it had already learned.
03
Speed, with accuracy
Phased delivery puts a working build in front of you early. Every figure is checked against its source before it ships, because speed means nothing in a fiduciary report if the numbers are wrong.
What Principal owns
Their platform. Our engine.
Their brand
The Analyzer carries Principal Financial Group’s name, look, and disclosures on every screen and every PDF page.
Their point of view
The Profiler’s explanations and the report’s narrative are written in Principal’s voice, from Principal’s research.
Their growth
Every plan is marked as an existing client or a prospect, so advisors use the Analyzer to win new plans, not only to review the ones they have.
Our engine
Underneath sit PlanTools’ data pipeline, calculations, and PDF reporting, built, run, and maintained by us.
The design experience
Five stages, from the first conversation to the next release.
Every engagement runs on the same loop. Requirements become blueprints, blueprints become work orders, work orders become verified software, and what users say becomes the next work order.
01
Requirements
Six documents, signed off
We start with the business problem, the current state, the product, the people who will use it, how success is measured, and the technical constraints. Nothing is designed until those are written down with you.
02
Blueprints
Every screen and figure, specified
Each feature becomes a blueprint: the screens, the filters, the calculations, the data fields behind every number, and the PDF page it prints on.
03
Work orders
Phased, visible, dated
Blueprints break into work orders, grouped into phases. You see what is in progress, what is in review, and what ships next, with a working build to click through as each phase lands.
04
Build and verify
Checked against the source
The team that builds PlanTools engineers it in house. Every figure is checked against its source data and its blueprint before release, because a fiduciary report that is almost right is wrong.
05
Launch and listen
Feedback becomes the next release
Once advisors are using it, what they ask for and where they get stuck is captured, written up, and turned into the next work order. The loop does not close at launch.
You can trace every figure back to the decision behind it.
Each requirement is written with you, in plain language, with the tests it has to pass. The blueprint names the data behind every number and the page it prints on. The work orders show what is done, what is in review, and what comes next.
Nothing is a black box. When a committee asks where a figure came from, the answer is already written down.
Design workspace
Target Date Analyzer
Requirement · REQ-11
Compare glide paths across target date series
- Plot % equity from 50 years before retirement to 30 years after
- Starting equity, equity at the target date, and ending equity for each series
- Roll-down begin and end age, and whether the path is to or through retirement
Blueprint · BP-11
- Source: Morningstar glide path data, by vintage
- Output: report page 11, chart and seven-column table
Work orders · Phase 2
- WO-41Import glide path data by vintageDone
- WO-42Chart and table on the report pageDone
- WO-43Verify against prospectus glide pathsIn review
The user journey
From a plan to a committee-ready report in four steps.
Advisors sign in to the Analyzer under Principal’s brand. Each step builds on the one before, and every plan stays on the dashboard to update, re-profile, or regenerate.
Step 01
Set up the plan
Plan name, asset and participant range, who requested it, the as-of date, and whether the plan is a client or a prospect.
Step 02
Profile the plan
Five questions about the participants and the sponsor’s views, each with the reason it matters and what the answer points toward.
Step 03
Compare series
Filter every target date series and share class, then choose the ones to compare, with the Profiler’s answers applied if you want them.
Step 04
Generate the PDFs
A comparison report built on Morningstar data, and the Profiler’s conversation guide, ready for the plan’s fiduciary file.
Step 02
The Profiler turns a conversation into criteria.
Five questions about the participants and the sponsor’s views. Each answer shows what it points toward, and why the question matters, so the advisor can walk a committee through it in the meeting.
| Demographics | Long-dated portfolios |
|---|---|
| Savings balance | A moderate glide path |
| Acceptable volatility | Moderate, 40% – 49% equity |
| Manager diversification | A single-manager framework |
| Active / passive | A predominantly passive framework |
Target Date Profiler
Question 3 of 5
Acceptable volatility
Which of the following describes the plan sponsor’s view on the amount of acceptable volatility for participants within the retirement plan?
What this indicates
Responses indicate a tolerance for risk which may correspond with a glide path based on the following general ranges as defined by the equity exposure at normal retirement date:
Conservative, equity exposure <40%
What this indicates
Responses indicate a tolerance for risk which may correspond with a glide path based on the following general ranges as defined by the equity exposure at normal retirement date:
Moderate, equity exposure 40% – 49%
What this indicates
Responses indicate a tolerance for risk which may correspond with a glide path based on the following general ranges as defined by the equity exposure at normal retirement date:
Aggressive, equity exposure 50%+
Why it matters. Participants aren’t always adept at assessing their own risk tolerance. How they react to volatility gives a reasonable picture of it.
Step 03
Every series, narrowed to the ones that fit.
Eight filters narrow the universe of target date series and share classes: to or through retirement, vehicle, equity risk, share class, manager diversification, active or passive, performance, and product history.
Apply the Profiler’s answers to start from the plan’s criteria, then choose the series to compare and generate the report.
Target date analyzer filters
Sample Plan
Fund name
- Glide path – to / through
- Vehicle type
- Glide path – equity risk
- Share classes / rate levels
- Manager diversification
- Active / passive
- Performance
- Product history
Every filter narrows the series available. Profiler answers can be applied here.
Share classes selected
6 series
- 01Principal LifeTime Hybrid CIT Z
- 02American Funds Trgt Date Retire R5
- 03Fidelity Freedom K
- 04T. Rowe Price Retirement R
- 05TIAA-CREF Lifecycle Index Inst
- 06Vanguard Target Retirement Inv
Generate report
The output
Two PDFs, ready for the fiduciary file.
A Target Date Series Comparison Report on Morningstar data, and the Profiler’s conversation guide. The samples below compare 6 series as of June 30, 2018.
The comparison report answers the questions a committee is expected to ask.
It opens with the Department of Labor’s target date fund tips, then works through what each series holds, how its glide path moves, who manages it, how it has performed and at what risk, and what it costs.
| Section | Pages |
|---|---|
| Introduction | p. 3 |
| DOL target date fund tips | p. 4 |
| Asset class selection | p. 5 – 10 |
| Glide path | p. 11 – 12 |
| Implementation | p. 13 – 14 |
| Return and risk | p. 15 – 81 |
| Holdings analysis | p. 82 – 89 |
| Operations | p. 90 – 94 |
| Important notes | p. 95 – 97 |
| Glossary | p. 98 – 99 |
Glide path structure
Report page 11 · June 30, 2018
Principal LifeTime Hybrid CIT ZOther series
Years until retirementYears after retirement
| Series | Start | At target | End | Roll-down ages |
|---|---|---|---|---|
| Principal LifeTime Hybrid CIT Z | 91% | 45% | 20% | 25 – 80 |
| American Funds Trgt Date Retire R5 | 91% | 46% | 26% | 35 – 95 |
| Fidelity Freedom K | 90% | 53% | 24% | 40 – 80 |
| T. Rowe Price Retirement R | 90% | 55% | 20% | 40 – 95 |
| TIAA-CREF Lifecycle Index Inst | 95% | 51% | 40% | 25 – 75 |
| Vanguard Target Retirement Inv | 90% | 50% | 30% | 40 – 75 |
More from the comparison report
Sample · June 30, 2018
What each series holds, who manages it, how each vintage has performed against its benchmarks, and what it costs, drawn from the sample report’s figures.
Asset class selection
Report page 5 · June 30, 2018
| Asset class | Principal | American Funds | Fidelity | T. Rowe Price | TIAA-CREF | Vanguard |
|---|---|---|---|---|---|---|
| Fixed income | ||||||
| Cash | Held | Held | Held | Held | Not held | Held |
| Short-term bond | Held | Held | Held | Held | Held | Held |
| Intermediate-term bond | Held | Held | Held | Held | Held | Held |
| Long-term bond | Held | Held | Held | Held | Held | Held |
| High-yield bond | Held | Held | Held | Held | Not held | Not held |
| Treasury inflation protection | Held | Held | Held | Held | Held | Held |
| Emerging market debt | Held | Not held | Not held | Held | Not held | Not held |
| Equities | ||||||
| U.S. large cap | Held | Held | Held | Held | Held | Held |
| U.S. mid cap | Held | Held | Held | Held | Held | Held |
| U.S. small cap | Held | Not held | Held | Held | Held | Held |
| Non-U.S. | Held | Held | Held | Held | Held | Held |
| Emerging markets | Held | Held | Held | Held | Held | Held |
| Real assets / alternatives | ||||||
| Real assets | Held | Not held | Not held | Held | Held | Not held |
| Alternative strategies | Not held | Not held | Not held | Not held | Not held | Not held |
Operations summary
Report page 90 · June 30, 2018
| Series | Since | Expense vs. category | Assets | Tenure |
|---|---|---|---|---|
| Principal | 07/2009 | 0.30% / 0.80% | $36.50bn | 8.99 yrs |
| American Funds | 02/2007 | 0.44% / 0.80% | $101.09bn | 11.42 yrs |
| Fidelity | 10/1996 | 0.57% / 0.80% | $187.00bn | 7.08 yrs |
| T. Rowe Price | 09/2002 | 1.18% / 0.80% | $133.03bn | 15.76 yrs |
| TIAA-CREF | 09/2009 | 0.10% / 0.80% | $14.92bn | 8.75 yrs |
| Vanguard | 10/2003 | 0.14% / 0.81% | $248.64bn | 5.35 yrs |
Net expense of the share class selected, against the Morningstar category average (the tick). Assets under management in billions; tenure of the longest-serving manager.
Manager diversification
Report page 14 · June 30, 2018
Affiliated managerUnaffiliated manager
- Principal LifeTime Hybrid CIT Z23 managers72%28%
- American Funds Trgt Date Retire R51 manager100%0%
- Fidelity Freedom K10 managers95%5%
- T. Rowe Price Retirement R3 managers100%0%
- TIAA-CREF Lifecycle Index Inst1 manager100%0%
- Vanguard Target Retirement Inv1 manager100%0%
Performance, 3 years
Report page 15 · June 30, 2018
PrincipalOther seriesS&P Target Date TRMorningstar Average
| Investment | 2020 | 2030 | 2040 | 2050 |
|---|---|---|---|---|
| Principal LifeTime Hybrid CIT Z | 5.96% | 7.28% | 8.24% | 8.89% |
| American Funds Trgt Date Retire R5 | 6.16% | 8.10% | 9.50% | 9.85% |
| Fidelity Freedom K | 6.46% | 7.86% | 8.73% | 8.73% |
| T. Rowe Price Retirement R | 6.13% | 7.34% | 8.09% | 8.28% |
| TIAA-CREF Lifecycle Index Inst | 5.99% | 7.29% | 8.54% | 9.07% |
| Vanguard Target Retirement Inv | 6.08% | 7.19% | 8.14% | 8.40% |
| S&P Target Date TR | 5.91% | 7.23% | 8.26% | 8.75% |
| Morningstar Average | 5.07% | 6.48% | 7.46% | 7.83% |
The second PDF
The Profiler’s conversation guide.
Every question, the answer given, and what it indicates, printed as a guide the advisor can leave with the client. Under each question, the guide explains why it matters in selecting a target date series.
Target Date Profiler
Conversation guide · Sample
- 1
Does your participant base have a concentration in terms of age?
18 – 35
Your answer indicatesA preference toward evaluating long-dated portfolios.
- 2
What is the average savings balance of the plan participants?
$50,000 – $250,000
Your answer indicatesWith question one, a preference toward a moderate glide path.
- 3
Which of the following describes the plan sponsor’s view on the amount of acceptable volatility for participants within the retirement plan?
Medium
Your answer indicatesA tolerance for risk that may correspond with a moderate glide path.
- 4
Do you believe it is important to provide participants with exposure to a variety of investment managers?
No, manager diversification is of minimal concern
Your answer indicatesA preference toward a single manager framework.
- 5
What does the appropriate plan fiduciary believe is more important – achieving performance near that of the broad market, at the lowest investment expense possible, or having more potential to outperform the broad market with a reasonable level of added investment expense?
Near the broad market, at the lowest expense
Your answer indicatesA preference toward a predominantly passive framework.
The guide closes by asking the client to save it, and the series research, in the plan’s fiduciary file.
What could we build for you?
Asset managers, recordkeepers, and national advisory firms bring us the tool their advisors need. We design it with you, build it on our engine, and run it under your brand.