SEATTLE–(BUSINESS WIRE)–Plan sponsor Nyhart Actuary and Employee Benefits (Nyhart) has re-enrolled its employees into Russell Adaptive Retirement Accounts developed by global asset manager Russell Investments. Russell Adaptive Retirement Accounts use the Russell Adaptive Investing™ methodology to create customized retirement portfolios from a defined contribution (DC) plan’s investment menu. They are designed to be cost-efficient and easy to use, like target-date funds, but to also go a step further toward increasing the probability of plan participants reaching their targeted retirement income goals.
“We are excited to take a step toward the future of retirement saving and add Russell Adaptive Retirement Accounts to our plan menu as our QDIA (qualified default investment alternative). Following our recent re-enrollment, our DC plan participants now receive customized portfolio allocations aimed at helping improve their retirement outcomes”
“We are excited to take a step toward the future of retirement saving and add Russell Adaptive Retirement Accounts to our plan menu as our QDIA (qualified default investment alternative). Following our recent re-enrollment, our DC plan participants now receive customized portfolio allocations aimed at helping improve their retirement outcomes,” said Tom Totten, chief executive officer and actuary at Nyhart. “Because the customized DC accounts incorporate factors beyond age – a current limitation of target date funds – our participants will have a more holistic view of whether they are on-track to meet their desired retirement income goals.”
Russell Adaptive Retirement Accounts are designed to be a QDIA that draws personal information from a DC plan sponsor’s record keeper and human resources systems, including age, gender, salary, current account holdings, contribution rate and DB pension benefit (if eligible). This personal information is inputted into Russell Investments’ asset allocation model that uses the firm’s capital market assumptions in order to construct a portfolio of the DC plan’s existing investment options customized to an individual participant. A participants’ customized asset allocation is then assessed and adjusted quarterly based on how well each individual is tracking toward his or her retirement income goal – without requiring any direct participant involvement.
“Target date funds continue to be one of the most popular default options, but each fund is built for the average participant—and no one is average. Differences in participants’ savings and market experiences can lead to different outcomes as they try to reach their targeted retirement income replacement goals,” explained Jeff Eng, director, retirement income solutions at Russell Investments. “Russell Adaptive Retirement Accounts are designed to provide participants customized asset allocations aimed at improving the likelihood that they will achieve their specific targeted retirement income by adapting to their investment profiles over time.”
“We’re proud to work with Nyhart as an early adopter of this evolutionary investment concept in the retirement space,” added Andrew Scherer, director of defined contribution for Russell Investments’ U.S. advisor-sold business. “We look forward to working with them to offer Russell Adaptive Retirement Accounts to other DC plan sponsors seeking customized, diversified portfolio options for their plan participants.”
Russell Investments uses a secure technology platform provided by NextCapital, a Chicago-based digital adviser and technology provider to maintain the Russell Adaptive Investing™ methodology that is the foundation of Russell Adaptive Retirement Accounts.
About Nyhart Actuary and Employee Benefits
Established in 1943, Nyhart Actuary and Employee Benefits (Nyhart) is one of the nation’s leading independent actuary and employee benefits consulting firms. Nyhart is a growth-driven consulting firm composed of actuaries, consultants, attorneys, accountants, and administrators who advise clients from public and private companies on financial matters related to pensions, retirement benefits, compensation strategies and other employee benefits. Nyhart’s clients represent more than $22 billion in retirement plan assets, and the firm has more than 1,000 clients in 48 states. Learn more about Nyhart at www.nyhart.com or send inquiries to firstname.lastname@example.org.
About Russell Investments
Russell Investments, a global asset manager, is one of only a few firms that offers actively managed 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.
Russell Investments has more than $237 billion in assets under management (as of 9/30/2015) and works with more than 2,500 institutional clients, independent distribution partners and individual investors globally. As a consultant to some of the largest pools of capital in the world, Russell Investments has $2.4 trillion in assets under advisement (as of 12/31/2014). The firm has four decades of experience researching and selecting investment managers and meets annually with more than 2,200 managers around the world. Russell Investments also traded more than $1.7 trillion in 2014 through its implementation services business.
Headquartered in Seattle, Washington, Russell Investments is wholly owned by London Stock Exchange Group (LSEG) and operates globally, including through its offices in Seattle, New York, London, Paris, Amsterdam, Milan, Dubai, Sydney, Melbourne, Auckland, Singapore, Seoul, Tokyo, Shanghai, Beijing, Toronto, Chicago, Milwaukee and Edinburgh. For more information about how Russell Investments helps to improve financial security for people, visit www.russell.com or follow @Russell_News.
The Russell Adapative Retirement Account (“ARA”) does not assure a profit or protect against loss in declining markets. There is no guarantee that ARA will result in a better outcome than traditional target date fund investing. Target date fund investing involves risk; principal loss is possible. The principal value of the fund is not guaranteed at any time, including the target date. The target date is the approximate date when investors plan to retire and would likely stop making new investments in the fund. Participants pay a fee for the asset allocation model advice in ARA, and that fee can change without notice to participants based on a number of factors.
Russell Adaptive Retirement Accounts are a product of Russell Investment Management Company (RIMCo). The implementation of Russell Adaptive Retirement Accounts in investors’ portfolios and related investment advice are provided through investment advisers and other financial intermediaries that are independent of RIMCo and its affiliates. The advice provided by RIMCo in Russell Adaptive Retirement Planner is based on asset-class level assumptions only.
There can be no assurance that the Adaptive Investing Model will enable Russell Adaptive Retirement Accounts to achieve their objective. Models may be flawed or not work as anticipated. The projections produced by Russell Adaptive Retirement Planner are estimated by using Russell Investments’ capital markets assumptions and are subject to change based on market conditions. There is no guarantee that the stated projections will be achieved.
Investing in a Russell Adaptive Retirement Account involves risk; principal loss is possible. The principal value of the account is not guaranteed at any time.
Russell Investments is a trade name and registered trademark of Frank Russell Company, a USA corporation, which operates through subsidiaries worldwide and is part of London Stock Exchange Group.
Russell Investment Group is an independent organization and is not affiliated with Nyhart Actuary and Employee Benefits.