Investment Products and Services Launches

By Javier Simon | May 18, 2017
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Envestnet Offering 3(38) Investment Service to TIAA Clients

Envestnet Retirement Solutions (ERS) announced its customized 3(38) investment management service platform, Envestnet Fiduciary Advantage, will be available to plan sponsors and advisers whose retirement plans include TIAA's Custom Portfolios Model Service. The same 3(38) investment management services will be made available to plan sponsors, or their advisers, that wish to incorporate TIAA's Target Income Models, which apply Liability Driven Investing (LDI) principles.

"Our arrangement with TIAA will offer fiduciary support for the broader swath of advisers that wish their plan sponsor clients to take advantage of TIAA's Target Income Models, but may choose not to take on the fiduciary responsibility for managing the portfolios themselves," says Robert Bernstein, co-founder and senior managing director of Envestnet Retirement Solutions. "We are pleased to provide fiduciary support to plan sponsors using TIAA's innovative model service given TIAA's long-held respect by industry insiders and the educators whose retirement plans it serves. We are also proud to help TIAA enable an even broader community of plan participants across the country to potentially save more for retirement using its Custom Portfolios Model Service and Target Income Models."

The Envestnet Fiduciary Advantagepowered by ERS's institutional-caliber research enables plan sponsors and their advisers to ensure they are selecting, managing, and reporting plan investments in accordance with their fiduciary duty, the firm notes. It allows plan sponsors and advisers to utilize the proprietary, systematic ERS SCORE Methodology to select plan investments that are in the best interests of participants.

"Plan sponsors and advisers are interested in simple yet sophisticated default solutions, like our Target Income Models, that focus on creating retirement income for plan participants," says Dan O'Toole, senior managing director and head of Institutional Investment Solutions and Research at TIAA. "By offering 3(38) services that provide plans using our custom solutions with fiduciary support, more institutions and participants will have access to lifetime income solutions in their retirement plans."