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Nationwide, Capital Group, Annexus Roll Out Next-Gen TDF

Nationwide, in partnership with the Capital Group and Annexus Retirement Solutions, has launched a new target date fund series to help participants optimize accumulation during their working years and maximize lifetime income in retirement. 

Available as an investment option in DC plans, the NCIT American Funds Lifetime Income Builder Target Date Series incorporates a fixed indexed annuity with a guaranteed lifetime withdrawal benefit created by Annexus that builds on Nationwide’s suite of in-plan guarantees. 

The TDF series is designed to deliver a total income of 6% at the projected retirement start date. It leverages several of the Capital Group’s proprietary American Funds. The underlying mutual funds are actively managed for growth and income opportunity by 64 portfolio managers who average 25 years of experience, according to the announcement.  

“Our partnership with industry leaders Capital Group and Annexus Retirement Solutions reinforces our commitment to helping build secure financial futures by providing participants an income solution that supports them not only up to—but all the way through—retirement,” notes Eric Stevenson, President of Nationwide Retirement Solutions.

“Lifetime Income Builder will leverage the proven building blocks of the American Funds, combined with Nationwide’s glidepath and lifetime income experience to provide participants with an effective source of retirement income, particularly in this low yield environment,” adds Brendan Mahoney, head of Institutional Retirement Strategic Growth at Capital Group. 

“Our patent-pending innovation embeds Lifetime Income Builder within a target date fund enabling participants to purchase a fund with a fixed index annuity on a daily basis,” notes Dave Paulsen, Chief Distribution Officer for Annexus Retirement Solutions. “This allows participants to maintain complete control over their savings by providing full liquidity of assets for the life of the product.”  

For plan sponsors, the TDF series provides a QDIA-compliant structure and a combination of liquidity, portability and ease of use that has been largely missing from previous in-plan income solutions, the announcement further emphasizes.  

The TDF series is set to launch this fall.