LOS ANGELES, March 27, 2024 - Capital Group, one of the world’s largest and most experienced investment management firms, announced today the availability of Target Date Plus as a Qualified Default Investment Alternative (QDIA) option for Voya Financial’s retirement plan solutions.
Target Date Plus, powered by Morningstar Investment Management LLC, is a target date service that offers personalized asset allocation tailored to a retirement saver’s specific needs and objectives by incorporating key recordkeeper data points, including age, salary, retirement plan balance, employee and employer contributions. The fee-based service, now available to eligible Voya workplace retirement plans, will offer participants a QDIA that blends American Funds Target Date Retirement Series®, or MyCompass American Funds Series that are trusteed by Great Gray Trust Company, LLC, with Morningstar Investment Management’s experience to deliver personalized allocations through its user interfaces.
“Capital Group is excited to work with Voya to offer a personalized target date service that leverages the American Funds glide path to better reflect investors’ retirement goals,” stated Brendan Mahoney, Head of Institutional Retirement Strategic Growth at Capital Group. “We realize too many people are still not saving enough for retirement, so it’s incumbent we provide simple and effective solutions designed to meet the evolving needs of hard-working Americans striving for a secure financial future.”
“At Voya, our focus remains on offering plan sponsors and advisors the level of choice and flexibility needed to help plan participants reach their retirement goals,” added Amy Vaillancourt, senior vice president, Workplace Product Development and Architecture at Voya Financial. “We’re pleased to leverage our technologies and solutions to support the Target Date Plus service and help facilitate the opportunity for greater retirement outcomes for plan participants.”
Last July, Voya also announced it is serving as the recordkeeper for the Secure Retirement 403(b) Pooled Employer Plan (PEP) launched by The Platinum 401k, Inc., the first 403(b) program to the market following the SECURE 2.0 legislation. That PEP, which includes American Funds Target Date Retirement Series® as the QDIA option for participants, was created in response to the SECURE 2.0 Act and is designed to provide a pooled plan option specifically to 501(c)(3) nonprofit organizations and health care-related entities, broadening retirement plan access for employees within these industries.
About Capital Group
Capital Group, home of American Funds, has been singularly focused on delivering superior results for long-term investors using high-conviction portfolios, rigorous research and individual accountability since 1931.
As of December 31, 2023, Capital Group manages more than $2.5 trillion in equity and fixed income assets for millions of individuals and institutional investors around the world. Capital Group manages equity assets through three investment groups. These groups make investment and proxy voting decisions independently. Fixed income investment professionals provide fixed income research and investment management across the Capital organization; however, for securities with equity characteristics, they act solely on behalf of one of the three equity investment groups.
For more information, visit capitalgroup.com.
About Voya Financial®
Voya Financial, Inc. (NYSE: VOYA), is a leading health, wealth and investment company with approximately 9,000 employees who are focused on achieving Voya’s aspirational vision: Clearing your path to financial confidence and a more fulfilling life. Through products, solutions and technologies, Voya helps its 15.2 million individual, workplace and institutional clients become well planned, well invested and well protected. Benefitfocus, a Voya company and a leading benefits administration provider, extends the reach of Voya’s workplace benefits and savings offerings by engaging directly with over 12 million employees in the U.S. Certified as a “Great Place to Work” by the Great Place to Work® Institute, Voya is purpose-driven and committed to conducting business in a way that is economically, ethically, socially and environmentally responsible. Voya has earned recognition as: one of the World’s Most Ethical Companies® by Ethisphere; a member of the Bloomberg Gender-Equality Index; and a “Best Place to Work for Disability Inclusion” on the Disability Equality Index. For more information, visit voya.com. Follow Voya Financial on Facebook, LinkedIn and Instagram.
Investments are not FDIC-insured, nor are they deposits of or guaranteed by a bank or any other entity, so they may lose value.
Investors should carefully consider investment objectives, risks, charges and expenses. This and other important information is contained in the fund prospectuses and summary prospectuses, which can be obtained from a financial professional and should be read carefully before investing.
Although target date portfolios are managed for investors on a projected retirement date time frame, the allocation strategy does not guarantee that investors' retirement goals will be met. Investment professionals manage the portfolio, moving it from a more growth-oriented strategy to a more income-oriented focus as the target date gets closer. The target date is the year that corresponds roughly to the year in which an investor is assumed to retire and begin taking withdrawals. Investment professionals continue to manage each portfolio for approximately 30 years after it reaches its target date.
Statements attributed to an individual represent the opinions of that individual as of the date published and do not necessarily reflect the opinions of Capital Group or its affiliates. This information is intended to highlight issues and should not be considered advice, an endorsement, or a recommendation.
This content, developed by Capital Group, home of American Funds, should not be used as a primary basis for investment decisions and is not intended to serve as impartial investment or fiduciary advice.
All Capital Group trademarks mentioned are owned by The Capital Group Companies, Inc., an affiliated company, or fund. All other company and product names mentioned are the property of their respective companies.
American Funds Distributors, Inc.
Copyright © 2024 Capital Group. All rights reserved.
Morningstar Investment Management LLC, a registered investment adviser and subsidiary of Morningstar, Inc., is responsible for creating an allocation strategy for participant retirement accounts from the chosen target date funds. Investment advice delivered by Morningstar Investment Management through Target Date Plus is based on information provided and limited to the investment options available. Morningstar Investment Management is not affiliated with Capital Group American Funds.
My Compass American Funds are bank collective investment funds; they are not mutual funds. Great Gray Trust Company, LLC serves as the Trustee of the Funds and maintains ultimate fiduciary authority over the management of, and investments made in, the Funds. Great Gray Trust Company, LLC has engaged flexPATH Strategies, LLC as sub-advisor to assist it in managing the Funds. The Funds and their units are exempt from registration under the Investment Company Act of 1940 and the Securities Act of 1933, respectively.
Investments in the Funds are not bank deposits or obligations of and are not insured or guaranteed by Great Gray Trust Company, LLC, any bank, the FDIC, the Federal Reserve, or any other governmental agency. The Funds are commingled investment vehicles, and as such, the values of the underlying investments will rise and fall according to market activity; it is possible to lose money by investing in the Funds.
Participation in Collective Investment Trust Funds is limited primarily to qualified retirement plans and certain state or local government plans and is not available to IRAs, health and welfare plans and, in certain cases, Keogh (H.R. 10) plans. Collective Investment Trust Funds may be suitable investments for plan fiduciaries seeking to construct a well-diversified retirement savings program. Investors should consider the investment objectives, risks, charges, and expenses of any pooled investment fund carefully before investing. The Additional Fund Information and Principal Risk Definitions (PRD) contains this and other information about a Collective Investment Trust Fund and is available at www.greatgray.com/principalriskdefinitions or ask for a copy free of charge by contacting Great Gray Trust Company, LLC at (866) 427-6885.
Great Gray and Great Gray Trust Company are service marks used in connection with various fiduciary and non-fiduciary services offered by Great Gray Trust Company, LLC.