Industry leaders combine multi-asset investing capabilities and
asset allocation expertise with advanced technology and participant
advice tool in next-generation “managed QDIA” option
Global asset manager Russell Investments will soon extend the
availability of its Adaptive Retirement Accounts, a customized
managed account option designed to be utilized as a qualified
default investment alternative (QDIA) option for defined
contribution plan participants, by leveraging Envestnet |
Retirement Solutions’ Qualified Individualized Life Target
Solutions (ERS QuILTS™) technology. With this managed QDIA option
powered by the ERS QuILTS™ patented participant advice engine,
Russell Investments continues to build on its legacy of expertise
in developing customized solutions for defined contribution plans
to be able to offer even greater customization at the individual
participant level.
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In developing this managed QDIA solution, 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 customized glide
path for each participant. It is designed to be cost-efficient and
easy to use, like traditional target-date funds, but to go a step
further toward increasing the probability of participants reaching
their targeted retirement income goals. Plan sponsors and advisors
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,” said Andrew Scherer, director of defined
contribution at Russell Investments. “We believe this solution can
help empower the advisor and the consultant to fulfill 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.”
About Russell Investments Adaptive Retirement Accounts
powered by ERS
- The solution automatically captures a
participant’s personal information from a DC plan sponsor’s record
keeper and human resources system without requiring a participant’s
direct involvement or feedback. ERS’ QuILTS™ technology facilitates
a seamless connection with the record keeper.
- Personal information—age, gender,
salary, current account holdings and contribution rate—is combined
with Russell Investments’ asset allocation model to construct a
portfolio of the DC plan’s existing investment options which is
customized to each individual participant.
- Through a participant user interface
developed by ERS, participants have the ability to add in outside
assets and incorporate personal preferences regarding savings rate,
retirement age, income needs and risk tolerance.
- Each participant’s customized asset
allocation is assessed quarterly and adjusted as needed based on
progress toward his or her targeted retirement income goal.
- The open-architecture framework
empowers advisors to select and monitor a plan’s investments from a
broad range of investment products, including passive and active
options.
- The solution is designed to provide
plan sponsors co-fiduciary support through Russell Investments’
asset allocation model advice and an advisor’s guidance regarding
plan investments.
“Participants want and deserve more personalized attention,”
said Babu Sivadasan, group president of ERS. “The combination of
Russell Investments’ strong asset allocation expertise and ERS’
patented QuILTS™ technology creates a powerful yet easy-to-use
next-generation investment alternative, committed to providing all
participants with an appropriate level of retirement income.”
About Russell Investments
Russell Investments, a global asset manager, is one of only a
few firms that offers actively managed multi-asset portfolios and
services which include advice, investments and implementation.
Russell Investments stands with institutional investors, financial
advisors and individuals working with their advisors—using the
firm’s core capabilities that extend across capital market
insights, manager research, asset allocation, portfolio
implementation and factor exposures to help each achieve their
desired investment outcomes.
Russell Investments has more than $244 billion in assets under
management (as of 6/30/2016) and works with more than 2,500
institutional clients, independent distribution partners and
individual investors globally. As a consultant to some of the
largest pools of capital in the world, Russell Investments has $2.2
trillion in assets under advisement (as of 12/31/2015). The firm
has four decades of experience researching and selecting investment
managers and meets annually with more than 2,200 managers around
the world. Russell Investments also traded more than $2 trillion in
2015 through its implementation services business.
Headquartered in Seattle, Washington, Russell Investments
operates globally, including through its offices in Seattle, New
York, London, Paris, Amsterdam, Milan, Dubai, Sydney, Melbourne,
Auckland, Seoul, Tokyo, Shanghai, Beijing, Toronto, Chicago and
Milwaukee. For more information about how Russell Investments helps
to improve financial security for people, visit
russellinvestments.com or follow @Russell_Invest.
About Envestnet | Retirement Solutions
Envestnet, Inc. (NYSE:ENV) is a leading provider of unified
wealth management technology and services to investment advisors.
Our open-architecture platforms unify and fortify the wealth
management process, delivering unparalleled flexibility, accuracy,
performance and value. Envestnet solutions enable the
transformation of wealth management into a transparent,
independent, objective and fully-aligned standard of care, and
empowers advisors to deliver better outcomes.
Envestnet | Retirement Solutions (ERS), a majority-owned
subsidiary of Envestnet, Inc., provides retirement advisors with an
integrated platform that combines one of the industry’s leading
practice management technology, research and due diligence, data
aggregation, compliance tools and intelligent managed account
solutions. ERS leverages Envestnet’s advanced capabilities and
resources, along with its experience in investment research,
portfolio construction and investment management, to meet the
specialized needs of each retirement plan stakeholder, from plan
participants to sponsors, advisors to home offices and record
keepers to DCIOs.
ERS QuILTS™ is a Qualified Individualized Life Target Solution
that is a comprehensive, customized Managed Accounts program. For
more information on Envestnet | Retirement Solutions, please visit
www.envestnet.com.
Russell Investments Adaptive Retirement Accounts are a
product of Russell Investments Capital LLC (“RICap”). The
implementation of Adaptive Retirement Accounts in investors’
portfolios and related investment advice are provided through
investment advisers and other financial intermediaries that are
independent of RICap and its affiliates. The advice provided by
RICap in Adaptive Retirement Planner is based on asset-class level
assumptions only.
Adaptive Retirement Accounts are based on a quantitative
model (the “model”). There can be no assurance that the model
enable the Adaptive Retirement Planner to achieve its objective.
Models may be flawed or not work as anticipated.
Investing in an Adaptive Retirement Account involves risk;
principal loss is possible. The principal value of the account is
not guaranteed at any time.
QDIA compliance is not determined by Russell Investments.
Russell Investments is an independent organization and is not
affiliated with Envestnet | Retirement Solutions.
Russell Investments’ ownership is composed of a majority stake
held by funds managed by TA Associates with minority stakes held by
funds managed by Reverence Capital Partners and Russell
Investments’ management.
Frank Russell Company is the owner of the Russell trademarks
contained in this material and all trademark rights related to the
Russell trademarks, which the members of the Russell Investments
group of companies are permitted to use under license from Frank
Russell Company. The members of the Russell Investments group of
companies are not affiliated in any manner with Frank Russell
Company or any entity operating under the “FTSE RUSSELL” brand.
CORP-10918
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version on businesswire.com: http://www.businesswire.com/news/home/20160926005378/en/
Russell InvestmentsKate Stouffer Bauman,
206-505-1858kstouffer@russellinvestments.comorEnvestnet |
Retirement SolutionsDana Taormina,
973-850-7305dtaormina@jconnelly.comorFor real-time news updates,
follow @Russell_News on Twitter.
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