A retirement services provider is offering employers another set of tools: custom-tailored default accounts.
The provider, Indianapolis-based OneAmerica, has agreed to distribute Russell Investments’ Adaptive Retirement Accounts managed account program.
OneAmerica will market the managed account program through a trust business that lets employer clients choose retirement plan options from a wide range of money managers. The employer clients include for-profit companies, nonprofit organizations, and government employers.
Russell Investments, which is based in Seattle, says the adaptive accounts program can be an alternative to use of target date funds.
The program collects information about a plan participant’s characteristics, the participant’s goals, and any assets the participant holds outside the plan. The system then provides a personalized investment portfolio tailored to suit the participant’s needs.
Participants who invest in target date funds choose the funds based mainly on the participant’s age and anticipated date of retirement.