This dedicated team, headed by Drew Carrington, Executive Director, is based in Chicago, according to a press release, and has three primary objectives:
- Introduce an optimal investment strategy to target date funds, based on UBS Global Asset Management’s 25-year heritage in 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 a press release, UBS noted that the Pension Protection Act of 2006 has led to a surge in demand for target-date funds, but cautioned that “many of the target date funds currently in the market are limited in their construction and in how they rebalance asset classes over time.”
“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 by leveraging UBS Global Asset Management’s 25-year heritage in active global asset allocation, security selection and risk management,” said Drew Carrington in the release.
Additionally, the Defined Contribution and Retirement Solutions Group is exploring longevity solutions, meant to address the concern of many investors that they will outlive their retirement savings.
“Everyone loves the inherent promise of a defined benefit plan,” said Carrington. “We believe this concept can be delivered to defined contribution plans through the comprehensive design of our retirement offering. By combining UBS Global Asset Management’s time-tested process with our new approach to addressing the challenges faced by plan sponsors and their participants, we have a great opportunity to deliver more compelling solutions to the market.”