Product & Service Launches – 5/9/24

AllianceBernstein Increases Options for Retirement Income Offering

AllianceBernstein has increased plan sponsors’ access to the firm’s retirement-income-generating investment—the AB Secure Income Portfolio—by removing restrictions on its use to only AB’s customized plan sponsor retirement plan designs.

Now, plan sponsors and advisers can offer the solution without changing their target date provider, including as part of a qualified default investment alternative, explains Jennifer DeLong, the head of defined contribution at AB.

“It can be utilized as an allocation in a managed account and it could also be used as a core menu option,” says DeLong.

For minimum initial investments, the institutional separate account requires sponsors to commit $100 million in assets to use it on the plan’s core menu or as an allocation in a managed account; or $250 million in target-date fund assets to use it alongside the plan’s existing target-date funds as part of the plan’s default, explains DeLong.

Currently, five “large,” plan sponsor clients use the lifetime income strategy, says DeLong.

“It’s a professionally managed investment option that provides guaranteed income for life at retirement, while also maintaining liquidity and growth potential,” she says. “The underlying investment is a balanced index fund, that’s 50% equities, 50% fixed income.”

Goldman Adds Alternatives Lending Feature for Indie Advisers

Goldman Sachs’ adviser solutions custodial group has added a lending feature with the goal of giving eligible registered investment advisors the ability to borrow against some alternative investment positions in their portfolios.

The addition from the Goldman Sachs Advisor Solutions group is designed to provide a new liquidity option to “sophisticated” investors, according to a release.

The firm noted Cerulli Associates research forecasting that RIAs plan to expand alternative investments by 31.1% in the next two years, the largest allocation increase of any investment type.  Custodians traditionally offer lending against publicly traded securities, but the new option will give them liquidity access as borrowed against alternative asset classes.

Human Interest Launches DOL Audit Defense Service for Small Business Plan Sponsors

Human Interest announced three new services for small businesses with the goal of making qualified plans less “costly, risky, and difficult,” according to an announcement.

The small 401(k) providers Concierge package offers small businesses Department of Labor audit defense, tax savings maximization, and notice delivery protection. The offerings include:

• Up to $50,000 in audit expense coverage, what the firm calls a “first” in the industry;
• Simplification of the process of claiming tax credits that can reduce or fully cover 401(k) costs for small businesses, which is also a first, according to the firm; and
• Notice delivery protection when plan sponsors send paper mail notices to employees.

Rakesh Mahajan, Human Interest’s chief revenue officer, added in a statement that: “Human Interest is focused on helping the 33.2 million small and medium-sized businesses of America provide their employees access to retirement without the stress that has historically accompanied offering this life-changing benefit. The new DOL Audit Defense service and embedded tax credit support are both the first of their kind in the industry. Our new services may save employers upwards of 100 hours of administrative and compliance work per year and tens of thousands of dollars in costly, unplanned expenses.”

The Concierge package is listed at $200 a month and $9 per eligible employee on Human Interest’s website.

TruStage Financial Group Bolsters Zone Income Annuity

Insurance, investment and technology provider TruStage Financial Group Inc. announced it has enhanced the Zone Income Annuity underwritten by MEMBERS Life Insurance Company, with new withdrawal flexibility for both existing and new contracts.

With the changes, clients can begin receiving guaranteed lifetime income as early as two businesses days after the contract is issued; change from single to joint lifetime income any time before lifetime income begins; and withdraw any amount up to the full lifetime income payment, according to a press release.

“Providing clients with greater power over their financial futures is vital to our work at TruStage,” Dave Hanzlik, vice president of annuity & retirement solutions, said in a statement. “With these enhancements to our Zone Income annuity, investors will be better able to adapt the product to a variety of lifestyle considerations and income needs.”

TruStage Financial group is the marketing name for CMFG Life Insurance company, subsidiaries and affiliates.

TCW Group Grows ETF Lineup

Global asset manager TCW Group Inc. announced it has completed the conversion of two mutual funds into exchange-traded funds—the TCW Artificial Intelligence ETF, trading under the symbol AIFD and the TCW Compounders ETF, trading under symbol GRW.

“This signifies TCW’s continued growth trajectory in ETFs as we develop new and compelling investment solutions that meet the evolving needs of our clients,” said Katie Koch, president and CEO of TCW, in a press release. “As we continue to innovate, we remain focused on cross-sector, long term megatrends, such as AI, and their transformative impact. We will continue to pursue accessible, efficient products poised to capture ongoing and emerging opportunities in the market.”

The TCW Artificial Intelligence TF was previously known as the TCW Artificial Intelligence Equity Fund, trading under the symbol TGFTX, and the TCW Compounders ETF was previously known as the TCW New America Premier Equities Fund, trading as TGUSX.

The TCW Artificial Intelligence ETF is an actively managed fund, investing in companies involved in development and commercialization of artificial intelligence technology; AIFD concentrates on companies building core technology, artificial intelligence systems and those already adopting the technology; and each Fund’s investment objective is long-term growth of capital, TCW Group says in the release.