UK/US - AllianceBernstein is to launch a range of off-the-shelf target date funds for trust and contract- based defined contribution schemes.
The US-based investment manager said its Retirement Strategies funds - to be officially launched on 26 January - combine the best features of diversified growth and duration matching techniques to match the movements in underlying annuity pricing.
This comes one year after AllianceBernstein launched its Customised Retirement Strategies target date funds (Global Pensions: 28 January 2010).
The RS range of target date funds - which are launching at about 35 basis points - progressively de-risk in one single fund as a member approaches their expected retirement date, as opposed to swapping between different funds typical of traditional lifestyle.
Head of defined contribution sales Tim Banks (pictured) told PP: "The portfolio begins its lifecycle with a passive diversified growth portfolio with a full range of global equities, including emerging markets and property, before moving to credit funds and potentially commodity funds through to a basket of fixed income as the target retirement date nears."
Asset allocation is dynamically managed. The mix can be changed on a daily basis as it is an unconstrained open architecture solution, creating a smoother journey for members, without harming long-term returns.
AllianceBernstein currently runs $16bn globally within its dynamic asset allocation strategy.
Banks added: "With the advent of auto-enrolment there will be a large number of people joining employer sponsored plans who are natural defaulters."
The firm has also announced chief financial officer John Howard will be leaving to return to his former employer, AQR Capital Management, to take up his previous role as chief operating officer.
He will remain with the firm until 15 February 2011 to oversee the release of last year's fourth quarter earnings and assist with the transition.
AllianceBernstein is conducting an internal and external search for a successor; meanwhile, corporate controller Edward Farrell will serve as interim CFO.
AllianceBernstein chairman and CEO Peter Kraus said: "We understand and respect the decision that John has made and wish him the best. He has worked tirelessly and with sharp focus during his tenure at AllianceBernstein. He significantly strengthened our Finance processes and enhanced our internal and external reporting.
"Ed has very strong finance skills and experience and I am confident that under his leadership, the finance function will continue to run smoothly."
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