Product and Service Launches – 3/21/24

Nuveen Distributes Annuity to Empower DC Plans

The TIAA Secure Income Account, TIAA’s guaranteed lifetime income product, is now available to Empower’s defined contribution clients, TIAA announced in a press release.  

The TIAA SIA fixed annuity will be offered within target-date collective investment trust offerings exclusively on the Empower platform, according to the announcement.

On March 21, Empower announced partnerships with asset managers and insurance providers to supply plan sponsor clients with a menu of guaranteed retirement income options.

“Together with Empower, we are helping employers directly and easily address America’s retirement challenge by making guaranteed lifetime income a reality for more people,” said Brendan McCarthy, head of retirement investing at Nuveen, TIAA’s asset manager, in a statementrelease. “Now plan sponsors will be able to choose a default retirement solution that offers employees—through SIA—principal protection, guaranteed growth and the option of receiving a monthly paycheck for rest of their lives—and do so without adding additional costs to their plans.”

Navia Benefits Partnership Will Offer Custom 401(k) Plans

Navia Benefits Solutions Inc. announced a strategic partnership with retirement savings platform Penelope Inc. to launch white label 401(k) plans and recordkeeping services. With the partnership, Penelope enters the third-party administrator space, according to the announcement.

By offering a white-label option, non-retirement third-party administrators can grow their businesses and deepen their existing relationships while also maintaining a cohesive brand experience, said Hilarie Aitken, Navia’s CEO, in a statement.

“Legacy platforms have made it difficult to offer comprehensive health and wealth solutions,” Aitken said. “Penelope’s new technology allows us to provide a holistic package that reaches across the benefit spectrum and creates a seamless, more efficient experience for our clients.”

Penelope launched in 2022 to provide streamlined, affordable and easy-to-manage retirement plans directly to business owners.

Providing customized white-label retirement plans, Penelope also supports Navia to provide flexible spending accounts, health savings accounts, health reimbursement arrangements, commuter plans, wellness plans and COBRA administration.

Harford Funds Expands ETFs

Asset manager Hartford Funds Management Co. LLC announced it launched an expanded systematic exchange-traded-fund product suite, including the debut of the Hartford Multifactor International Small Company ETF.

Hartford Funds’ systematic strategies use a proprietary multifactor investment approach developed by the firm involving factors that include size, value, quality and momentum. Hartford’s passively managed ETFs aim to offer investors a broad range of options and exposure to markets through a variety of systematic strategies.

“It’s imperative that our investment options help meet the diverse needs of our clients,” said Brian Kraus, Hartford Funds’ senior vice president for systematic ETFs,” in a statement. “We are excited about the growth of our flagship lineup of systematic ETF products and look forward to continuing to leverage our strong expertise with systematic ETFs to provide our clients with compelling investment opportunities.”

Betterment for Advisors Launches Funds

Betterment for Advisors, the registered investment adviser custody division of financial benefits provider Betterment at Work, announced it has added thousands of mutual funds to its custom portfolio construction menu. 

The launch coincided with the 100th anniversary of the mutual fund and provides advisers with additional control to meet growing client demand for personalized portfolios, according to Betterment’s announcement.

“Betterment for Advisors is laser-focused on delivering a holistic platform that includes flexible portfolio options for RIAs across retirement and wealth,” said Tom Moore, head of Betterment for Advisors, in a statement. “Adding mutual funds has long been advisors’ top request, and we are thrilled to be able to offer this capability.”

Nearly $20 trillion in assets are held in mutual funds in the U.S. today, according to Federal Reserve statistics.

Using Betterment’s menu, advisers can combine mutual funds and exchange-traded funds in their custom models on the Betterment for Advisors platform, and the asset manager options include funds from such firms as Vanguard, PIMCO, T. Rowe Price and Fidelity, according to the press release.

Texas-Based Wealth Management Software Firm Launches Social Security Optimizer

Voyant Inc., an Austin, Texas-based provider of software-as-a-service-based wealth management, financial wellness and client digital tools, announced the launch of wealth management options to assist financial advisers.

Voyant’s wealth management tools are offered as part of the Voyant package at no additional cost to the user, according to the announcement.

The firm’s wealth management solutions cover an array of needs and scenarios, including:

• A Social Security optimization model that helps individuals estimate the best time to begin collecting Social Security benefits based on a multitude of information, such as retirement age, projected life expectancy and income;
• A Roth conversion tool provides insights about if and when to convert a Roth IRA. It estimates the money that could be saved on income taxes and the benefits of paying taxes on the converted amount in the moment or in the future; and
• Advanced insurance modeling to provide insights into the impact of life insurance on a client’s wealth, including the ability to take out loans against a life insurance policy.

Voyant is a subsidiary of holding company AssetMark Financial Holdings Inc.

BNP Paribas Asset Management Launches Active Global Net Zero Transition Equity Fund

BNP Paribas Asset Management announced its first active global net zero transition equity fund.

The fund’s investment objective is to reduce greenhouse gas emissions and implied temperature rise to less than two degrees over time; using net-zero alignment as a primary objective with a just transition lens; and a behavioral fundamental approach to deliver above-average returns, according to the announcement.

The portfolio is selected from more than 1,000 companies focusing on achieving net zero with a just transition lens, defined by the International Labour Organization as “greening the economy in a way that is as fair and inclusive as possible to everyone concerned, creating decent work opportunities and leaving no one behind.” The investment universe is diversified by geography, size and sector, with technology, industrials and materials represented.

“Net zero can be achieved through directing investments towards companies providing solutions and those adopting solutions to decarbonize and therefore contribute to net zero alignment,” said Nadia Grant, head of global equities at BNPP AM and portfolio manager of the BNP Paribas Global Net Zero Transition Equity Fund, in a press release. “With this new equity fund, we aim to provide an innovative strategy aligned with BNPP AM Net Zero commitments while leveraging our social and environmental expertise and focusing on engagement.”

The fund is classified Article 8—products promoting environmental or social characteristics and which integrate sustainability into the investment process in a binding manner—as per the EU’s Sustainable Finance Disclosure Regulation and is committed to having at least 50% in holdings that qualify as ‘sustainable’ under BNPP AM’s SFDR implementation approach.

HSA Bank Debuts Emergency Savings Accounts

HSA Bank, a division of Webster Bank, announced the launch of an emergency savings account program, allowing plan sponsors to help employees save for unexpected expenses.

The emergency savings accounts operate the same way as bank savings and checking accounts. Account owners will have access to their funds whenever needed and with no restrictions to what savings can be spent on, according to the announcement.

Using the after-tax funded account, employers can offer optional incentives like sign-up, matching and milestone bonuses, according to the release.

More than half (57%) of Americans say saving for emergencies is a top financial priority, yet 31% do not have an emergency fund, according to a Webster Bank survey. Separate research from professional services company PwC found financially stressed employees are twice as likely to look for a new job.

“Financial wellness is one of the fastest growing areas of focus for employers and ESAs are a critical part of financial planning alongside retirement and healthcare spending,” said Chad Wilkins, president of HSA Bank, in a statement. “This new offering continues to expand HSA Bank’s product suite to ensure we’re helping employers retain and attract new talent.”