J.P. Morgan Asset Management is simplifying its 401(k) planmenu. The company announced it is replacing its traditional menu ofinvestment choices it offers to defined contribution plans andreplacing it with a simplified menu of three investment portfolios:one consisting of diversified stock strategies, one withdiversified bond strategies and one with diversified cashalternatives.

The new approach, called Core Menu Innovation, “represents ourmost advanced thinking on how to help Americans achieve a morefinancially sound retirement," said Michael Falcon, head ofretirement for J.P. Morgan Asset Management. "The 401k plan is theprimary retirement savings vehicle for most Americans today, soit's critical that we help participants make better investmentdecisions. J.P. Morgan research shows that participants, who chooseto invest on their own, rather than in some form of professionallymanaged solution, are, on average, falling short of theirretirement savings goals. We have to help them close that gap, andwe believe CMI is one way to do so."

Plan sponsors are searching for ways to increase participantengagement and consolidate their investment line-ups. The Core Menusolution provides fewer, but more sophisticated, investment optionsand leverages the diversification benefits offered by target-datefunds and other professionally managed asset-allocationsolutions.

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