Russell Investments is extending the availability of its Adaptive Retirement Accounts, a customised managed account option designed to be used as a qualified default investment alternative (QDIA) option for defined contribution plan participants, by leveraging Envestnet | Retirement Solutions’ Qualified Individualised Life Target Solutions (ERS QuILTS) technology.
Russell Investments says it will be able to offer greater customisation at the individual participant level.
Russell Investments is combining its multi-asset investing and asset allocation expertise with ERS’ QuILTS technology capabilities and participant advice tool.
The result is a QDIA option that creates a customised glide path for each participant. It is designed to be cost-efficient and easy to use, like traditional target-date funds, but go a step further toward increasing the probability of participants reaching their targeted retirement income goals.
Plan sponsors and advisers will be able to incorporate this new default investment solution into their defined contribution (DC) plans in the first half of 2017.
“Individual differences in participants’ savings and market experiences can have a meaningful impact on targeted retirement income replacement goals. This offers an alternative to target-date funds that focuses primarily on one simple data point—a participant’s age,” says Andrew Scherer, director of defined contribution at Russell Investments. “We believe this solution can help empower the advisor and the consultant to fulfil their fiduciary duties in areas such as plan design and investment selection. It provides a strong managed QDIA option that addresses the industry’s heightened focus on ensuring fiduciary standards are met.”