Ascensus is teaming up with the Capital Group to begin offering the Ascensus | American Funds Pooled Employer Plan (PEP) solution on its independent, open-architecture recordkeeping platform beginning in spring 2024, according to an announcement by the firm.
"We're delighted to partner with Capital Group, home of American Funds, to offer the significant benefits and flexibility our PEP program provides," said Jason Crane, head of Distribution for Ascensus Retirement. "Capital Group shares our goal to help more savers save more, and our commitment to offering a full product continuum to meet customer needs.”
Ascensus will be the first provider to offer American Funds Target Date Plus, according to Crane. The new investment solution will focus on creating a unique portfolio that matches a participant's financial needs more closely than a traditional target date fund (TDF) allocation determined only by age.
"After watching the PEP market evolve over the last several years and listening closely to advisors who desired a pooled plan offering, we are pleased to announce this partnership with Ascensus," stated Mike Bockstie, Senior Vice President for Institutional Retirement Sales at the Capital Group. "The Ascensus-American Funds PEP Solution is the first in the industry to include Target Date Plus1 as a QDIA option for participants, which provides personalized allocation advice tailored to a retirement saver's specific needs and objectives."
According to the announcement, the solution will offer the traditional administrative and investment fiduciary benefits of a PEP—with Wilshire taking on the role as a 3(38) investment fiduciary—plus several key differentiators, including:
- American Funds Target Date Plus, powered by Morningstar Investment Management, with personalized allocation advice;
- a tiered investment menu grouping investment funds into logical categories;
- a fully bundled solution supported by Ascensus;
- tools like My Forecast, where savers will be able to see a complete retirement readiness view;
- plan design flexibility that works for each adopting employer; and
- Financial Finesse financial wellness coaching benefits.
Ascensus notes that it has reached $1 billion in PEP assets under administration, representing more than 33,000 savers.
