New Active/Passive Series with Independent Manager Selection Rounds Out AB’s Multi-Manager Target-Date Platform
AllianceBernstein L.P. (“AB”), a leading global investment management firm, through its subsidiary AllianceBernstein Trust Company, today announced that it is now offering a multi-manager target-date series in a collective investment trust (CIT) format. The target-date portfolios, AB Multi-Manager Retirement Trusts, will combine both active and passive strategies and seek to offer plan sponsors access to the best investment managers. AB is responsible for the glide path design and management, and Mercer, a leading global investment consultant, provides the third-party manager research and selection for approximately 70% of the portfolio assets.
The launch of the CIT portfolios marks the continued build out of AB’s target-date platform which includes customized solutions for large plans, packaged solutions like their recently-launched multi-manager mutual fund series and a multi-insurer lifetime income solution. AB works with many of the country’s largest defined contribution plans and has long been known as a leader in customized target-date solutions, where it manages more than $35B.
The AB Multi-Manager Retirement Trusts, by providing independent selection of funds from highly regarded investment managers in one portfolio, addresses issues that the U.S. Department of Labor (DOL) has identified in its “Tips for ERISA Plan Fiduciaries,” noting that non-proprietary target-date funds could offer advantages to plan participants by diversifying their exposure to investment providers.
“We wanted to bring our best thinking and years of experience in customized target-date solutions to plan sponsors by offering them a packaged CIT vehicle that delivers the active/passive hybrid design features used by the largest, most sophisticated plans at more attractive economics than many mutual fund offerings” said Dick Davies, Head of Defined Contribution and Co-Head of North America Institutional at AB. “It’s clear the DOL is encouraging plan sponsors to consider alternatives to proprietary target-date funds and we think accessing multiple investment managers can address the growing fiduciary concerns of sponsors.”
In addition to using both active and passive strategies, the AB Multi-Manager Retirement Trusts incorporate a broad range of asset classes, including those that provide diversification to stock and bonds, and will be dynamically managed to adjust asset class exposures as market conditions change.
To learn more about the AB’s defined contribution solutions, go to http://www.abdc.com/
About AB’s Multi-Asset Solutions Group
AB’s Multi-Asset Solutions Group is a dedicated team of more than 25 investment professionals that utilizes its deep capital markets expertise, research insights and a full range of risk/return sources as building blocks to create integrated multi-asset investment solutions tailored to the needs of each client. These include glide path strategies like target-date and lifetime income solutions for defined contribution plans, asset allocation strategies and solutions targeting unique market index and factor exposures.
AB is a leading global investment management firm that offers high-quality research and diversified investment services to institutional investors, individuals and private wealth clients in major world markets.
As of March 31, 2015, AllianceBernstein Holding L.P. owned approximately 36.8% of the issued and outstanding AB Units and AXA, one of the largest global financial services organizations, owned an approximate 62.7% economic interest in AB.
Additional information about AB may be found on our website, http://www.abglobal.com/.
Mercer is a global consulting leader in talent, health, retirement, and investments. Mercer helps clients around the world advance the health, wealth, and performance of their most vital asset — their people. Mercer’s more than 20,000 employees are based in more than 40 countries and the firm operates in over 130 countries. Mercer is a wholly owned subsidiary of Marsh & McLennan Companies (NYSE: MMC), a global professional services firm offering clients advice and solutions in the areas of risk, strategy and people. With 57,000 employees worldwide and annual revenue exceeding $13 billion, Marsh & McLennan Companies is also the parent company of Marsh, a leader in insurance broking and risk management; Guy Carpenter, a leader in providing risk and reinsurance intermediary services; and Oliver Wyman, a leader in management consulting. For more information, visit www.mercer.com. Follow Mercer on Twitter @MercerInsights.