Russell Investments expands distribution of adaptive retirement accounts
Milliman makes customized managed accounts available to DC plan sponsors
SEATTLE, February 5, 2018 — Global asset manager Russell Investments announced an agreement with global consulting and actuarial firm Milliman to distribute Russell Investments’ Adaptive Retirement Accounts (ARA) to defined contribution plans. The managed account option is available on Milliman’s record-keeping platform, which includes U.S. corporations, nonprofit organizations and public-sector entities involving about 890 plans and 700,000 participants.
"This relationship further validates our defined contribution offering, which combines multi-asset investment solutions, implementation expertise and partnerships with recordkeepers and plan advisors,” said Holly Verdeyen, senior director, defined contribution strategy.
Russell Investments’ Adaptive Retirement Accounts are customized, managed accounts designed as a qualified, default investment alternative (QDIA) option for DC plan participants. They draw participant information from a plan sponsor’s record keeper and human resources systems, including age, gender, salary, current account holdings, contribution rate and pension benefit (if eligible). Russell Investments’ asset allocation model combines this participant information with the firm’s capital markets assumptions to construct a customized portfolio of the DC plan’s existing investment options.
“Plan sponsors are looking to increase the likelihood that participants will reach their retirement goals, and this focus on achieving outcomes in a cost-effective manner is driving interest in collective investment trusts and our Adaptive Retirement Accounts,” added Andrew Scherer, senior director, defined contribution.
ARA’s customized asset allocation is then assessed and adjusted quarterly based on how well the individual is tracking toward his or her retirement income goal – without requiring any direct participant involvement. Russell Investments uses a secure technology platform provided by NextCapital, a Chicago-based digital adviser and technology provider, to maintain the proprietary methodology which is the foundation of Adaptive Retirement Accounts.
About Russell Investments
Russell Investments, a global asset manager, offers multi-asset portfolios and services which include advice, investments and implementation. Russell Investments stands with institutional investors, financial advisors and individuals working with their advisors—using the firm’s core capabilities that extend across capital market insights, manager research, asset allocation, portfolio implementation and factor exposures—to help each achieve their desired investment outcomes. The firm has more than $296 billion in assets under management (as of 12/31/2017).
Headquartered in Seattle, Washington, Russell Investments operates globally with 21 offices, providing investment services in the world’s major financial centers such as London, Paris, Amsterdam, Sydney, Tokyo, Shanghai, Toronto and New York. For more information about how Russell Investments helps to improve financial security for people, visit russellinvestments.com or follow @Russell_Invest.