According to a press release, the offering “combines the strength of four world-class, institutional investment managers in one target-date fund”. Institutionally-priced, MRS is positioned as an alternative to single manager target-date funds, “with the distinct flexibility of providing the glide path that best meets the needs of the plan and its participants,” according to the announcement.
“More and more defined contribution plan sponsors are recognizing that the single-manager target-date funds they originally chose—perhaps retail mutual funds offered by their recordkeepers—might not be keeping up with the best thinking on target-date design available in the marketplace today,” said Thomas J. Fontaine, Global Head of Defined Contribution at AllianceBernstein Defined Contribution Investments (“ABDC”). “Yet they are not quite ready to take a fully customized approach, perhaps due to the perceived effort to create and monitor these portfolios on an ongoing basis. For these plans, we designed Multimanager Retirement Strategies, which diversifies manager risk while maintaining the simplicity and convenience of a prepackaged solution.”
The MRS multimanager service includes a blend of active and passive investment strategies, including the participation of fund managers PIMCO, State Street Global Advisors, Wellington Trust Company, NA, an affiliate of Wellington Management Company, LLP, and AllianceBernstein.
“Through our experience in designing customized target-date solutions over the past four years for some of the country’s largest plans, we’ve gained valuable insight into what plan sponsors want and need in their target-date portfolios. Many sponsors realize the dominant role these funds will play in their plans and are seeking better solutions,” said Mark Fortier, Head of ABDC Product and Partner Strategy. “MRS is a simple solution that grows with a plan and can adapt to its needs over time.”
MRS is available to defined contribution plans with a minimum of $50 million in target-date assets. To learn more about MRS, please go to www.abdc.com/multimanager-retirement-strategies.