Capital Group, home of American Funds, along with the Workplace Solutions group within Morningstar Investment Management, have announced a new target date service designed to meet individual retirement saver’s specific needs and objectives.
The Target Date Plus service blends the American Funds Target Date Retirement Series with Morningstar Investment Management’s experience delivering online investment advice through its user interfaces and network of integrated recordkeepers. The solution can also be used by employers as a qualified default investment alternative.
“Capital Group is excited for our highly rated target date series to be leveraged to create a more personalized target date service for investors saving for retirement,” said Brendan Mahoney, Head of Institutional Retirement Strategic Growth at Capital Group. “Target Date Plus will enable retirement plans to deliver the personalized asset allocation that participants, plan sponsors and advisors are increasingly seeking, and importantly with administrative ease.”
According to the announcement, Target Date Plus underscores Capital Group’s efforts to provide more flexibility in how it distributes its investment services and is a natural evolution of the firm’s target date series. The service offers additional personalization by incorporating an individual’s age, salary, assets, savings rate and company match rate. Morningstar Investment Management analyzes this information and provides the investor with a customized asset allocation and investment portfolio. Morningstar Investment Management can also inform the individual if they may benefit from allocating part of their savings to a guaranteed income annuity.
“There is growing demand from retirement savers for investment strategies that better reflect their goals and aspirations,” said Brock Johnson, President of Global Retirement and Workplace Solutions at Morningstar Investment Management. “Using our strong network of data integrations with recordkeepers, user experiences and advice engines, we can power a new generation of personalized advice services that we believe can position retirement savers for better outcomes.”
