Nationwide, Annexus, Capital Group Launches Series of Target Date Funds
Columbus, Ohio – Nationwide, in partnership with Capital Group, the home of US funds, today announced the NCIT American Funds Lifetime Income Builder Target Date Series (the TDF Series). Presented as a new generation target date fund, it integrates Lifetime Income Generator, a fixed indexed annuity with a lifetime withdrawal guarantee invented by Annexus Retirement Solutions which is added to the Nationwide product line guarantees on plan. The TDF Series will be available as an investment option in defined contribution plans and is designed to help members maximize growth potential and, when the time comes, generate guaranteed income that will last a lifetime.
The TDF Series is financially designed to provide a total income of 6% on the expected retirement date. He leverages several exclusive American Funds, distinctive investment management and 90 years of experience helping investors secure their financial future. The underlying mutual funds are actively managed for growth and / or income opportunities by 64 portfolio managers with an average of 25 years of experience.
“Our product development philosophy is participant-centric, and this latest offering complements our range of in-plan guarantee solutions which are all designed to help generate income for life,” said Eric Stevenson, President of Nationwide Retirement Solutions. “Our partnership with industry leaders Capital Group and Annexus Retirement Solutions reinforces our commitment to help build a secure financial future by providing plan members with an income solution that supports them not only until retirement, but everything. throughout it.
“Lifetime Income Builder will leverage the proven building blocks of US funds, combined with Nationwide’s progression trajectory and lifetime income experience to provide plan members with an effective source of retirement income, particularly in this demanding environment. low yield, ”said Brendan Mahoney, Head of Strategic Institutional Retirement Growth at Capital Group.
The TDF Series turnkey solution provides plan members with a familiar, growth-oriented TDF investment experience, including risk-mitigating protection and income guarantees designed to maximize and deliver income for life. For plan sponsors, it offers a QDIA compliant structure and a combination of liquidity, portability, and ease of use that were largely lacking in previous income solutions in the plan.
The TDF Series is structured as a collective investment trust and includes Lifetime Income Builder, a group fixed indexed annuity (AIF) with a guaranteed lifetime withdrawal guarantee (GLWB). This structure allows participants to participate in the market during accumulation while protecting their future target income in retirement. The TDF series is expected to launch this fall.
“The built-in income guarantees prevent the possibility of participants outliving their money,” said Dave Paulsen, Director of Distribution for Annexus Retirement Solutions. “A lockout feature enforces safeguards to eliminate the risk of sequence returns. But what really is a game changer is its ability to provide a daily valuation of the fixed indexed annuity. Our patent pending innovation integrates Lifetime Income Builder into a target date fund allowing participants to purchase a fund with a fixed index annuity on a daily basis. This allows participants to maintain full control over their savings by providing full asset liquidity for the life of the product.