TIAA has linked up with Envestnet Retirement Solutions to provide fiduciary support to its Custom Portfolios Model Service and Target Income Models retirement products.
Under the deal, Envestnet will provide fiduciary services to advisors selecting the funds for their plan sponsor clients.
Advisors will have access to the Envestnet Fiduciary Advantage investment management platform and use of the ERS Score Methodology, which ranks investment managers based on risk control, risk/return profile and fee structure.
Robert Bernstein, co-Founder and senior managing director of Envestnet Retirement Solutions, said: ‘Our arrangement with TIAA will offer fiduciary support for…advisors that wish their plan sponsor clients to take advantage of TIAA's Target Income Models, but may choose not to take on the fiduciary responsibility for managing the portfolios themselves.’
TIAA's Target Income Models seek to deliver a target level of income in retirement. Plan sponsors can develop the models by selecting investment options and glide paths and assign participants to them.
‘We see the revolution of target-date from very static portfolios to much more individualized and we have always believed that participants need much more individualized portfolios which are dynamically rebalanced,’ said Babu Sivadasa, group president of Envestnet Retirement solutions.
TIAA had $938 billion assets under management as at March 31 2017.