OneAmerica Financial announced the launch of a new investment option that the firm suggests is ideal for clients looking for a target date series that may be more cost-effective than traditional target date funds (TDFs).
RetirementTrack American Funds is an actively managed target date series of collective investment trusts (CITs) that are trusteed by Great Gray Trust Company, LLC and are offered only on retirement platforms, according to the announcement.
“This is another great option for OneAmerica Financial clients who want to help their participants take control of their retirement strategy,” Alan Blaskowski, Vice President of Product, Business Development and Innovation for Retirement Services, said in a statement. “We're proud to add this American Funds option to our portfolio of products.”
The series adjusts its mix of bonds and equities over time to generate return and manage risk based on where a participant is in their retirement journey. For instance, participants further from retirement will see lower allocations to bond funds and increased allocations to equities in order to build wealth. Those closer to retirement will see allocations increase to fixed income and allocations decrease to equities to preserve that wealth. As CITs, RetirementTrack American Funds can provide more cost efficiency than traditional mutual funds, the announcement further emphasizes.
RetirementTrack American Funds also helps long-term investors’ efforts to maximize assets for retirement by investing in American Funds mutual funds and a stable value vehicle sponsored by American United Life Insurance Company (AUL), a OneAmerica Financial company.
Meanwhile, OneAmerica Financial notes that it recently celebrated the RetirementTrack target date series’ three-year anniversary and surpassing $1 billion in assets. The RetirementTrack American Funds series builds on RetirementTrack while also providing participants with a wealth-building strategy designed to fit their needs.
OneAmerica Financial is collaborating with three industry providers on this endeavor: flexPath Strategies, LLC; Great Gray Trust Company, LLC; and American Funds.[1] These companies, according to the announcement, will help manage various components of the series.
RetirementTrack American Funds are currently available for use by OneAmerica Financial clients.
[1] flexPath Strategies, Great Gray Trust Company and American Funds are not affiliates of the OneAmerica Financial companies.
