CHICAGO, Feb. 19, 2013 /PRNewswire/ -- As target-date fund investing takes hold in 401(k) plans, the target date fund is evolving.
On February 12th, Russell Investments introduced Russell Adaptive Retirement Accounts for institutional plan sponsors to offer their retirement plan participants a personalized asset allocation strategy that considers factors beyond age, and is automatically updated over time for each participant.
According to the December 2012 ICI Research Perspective, target-date funds accounted for 20% of total plan assets among 401(k) plans that offered them in 2011. Additionally, adoption of target-date investing is accelerating, with the highest participation among the youngest and most-recently hired employees.
Powered by the PlanOutcome software developed by Business Logic, Russell Adaptive Retirement Accounts can provide a more personalized target-date offering using the plan's existing investment options and participant information made available by the plan's recordkeeper, including age, savings deferral rate, current account balance, salary and other benefits. The solution also automates the process of re-balancing in the future to minimize the burden on plan participants.
PlanOutcome has been proven in deployments by the largest financial institutions to be secure, scalable, and capable of automating investment advice and communications to plan participants. It also allows for changing methodologies over time as participants transition from savings and accumulation to retirement.
"We are very excited to be working with Russell Investments as they expand both the scope and definition of target-date investing within defined contribution retirement plans," said Dirk Quayle, President of Business Logic. "We look forward to helping Russell Adaptive Retirement Accounts increase plan participants' likelihood of reaching their target retirement outcome."
"Business Logic's software enhances our commitment to flexible multi-manager, multi-asset solutions within retirement plans," said Dick Davies, managing director, defined contribution at Russell Investments. "Today's institutional offerings can be enhanced by utilizing participant information available on the recordkeeper or the plan sponsor's human resources system to help participants improve their retirement outcomes."
About Business Logic
Business Logic provides innovative, powerful online investment solutions for institutions and investors with the PlanOutcome, LikeAssets, and MarketGlide products. The world's largest financial institutions work with us to help their customers understand, analyze, and manage investments. Information about Business Logic is available at www.businesslogic.com.
 Investment Company Institute, December 2012, http://ici.org/pdf/per18-09.pdf.
SOURCE Business Logic Corporation