According to the announcement, the new group has three primary objectives:
- Introduce an optimal investment strategy to target date funds based on active asset allocation;
- Develop innovative “longevity solutions” to bring defined benefit-style advantages to defined contribution plans;
- Provide plan sponsors with a single end-to-end solution covering both defined contribution and defined benefit plans in collaboration with the firm’s Asset Liability Investment Solutions Team.
“In the coming weeks, we will introduce a proprietary series of ‘next generation’ target date funds that go beyond the pre-determined asset mix of current target date funds to take advantage of changing market conditions,” said Drew Carrington, Executive Director of the new group, in the release.
The group is also exploring new longevity solutions to address concerns that retirees will outlive their savings.