July 17, 2023

Capital Group’s Institutional Retirement Business Looks to Solve Critical Industry Gaps

Firm is focused on strategic growth opportunities to improve participant outcomes

LOS ANGELES, July 17, 2023 – The institutional retirement business within Capital Group, one of the world’s largest and most experienced asset management firms, is driving new growth by offering solutions and services that complement its investment products. Building on a long history of helping to meet the needs of participants, plan sponsors, and the intermediaries who serve them, the firm is forming partnerships to enhance existing client relationships and test new solutions for participants through a series of pilot programs.

“Too many people in this country are still not saving enough for retirement. By listening to, and learning from the advisors, consultants, and other distribution partners with whom we work, Capital Group’s institutional retirement business is addressing the changing dynamics of the U.S. retirement and asset management landscape head-on,” remarked Brendan Mahoney, head of Capital Group’s Institutional Retirement Strategic Growth team. “Advisors are working tirelessly to help their clients save for retirement and it is our mission to give them the tools and resources to see that objective through.”

The firm is focused on building solutions that address five distinct themes driving the industry:

  • Wellness and engagement:  Responding to employers’ desire to offer workplace wellness and engagement solutions, Capital Group has initiated a series of pilots that address a broad array of personal benefits, planning and financial concerns — with a focus on helping employees to smoothly transition into retirement.
  • Collective investment trusts (CIT) expansion and growth: To address the rapid growth of CITs, Capital Group is working closely with a range of recordkeepers and investment consultants to deploy the firm’s strategies in intermediated structures, adding new recordkeeper and aggregator advisory firm CIT arrangements.
  • Qualified Default Investment Alternative (QDIA) evolution: In addition to offering co-branded and co-manufactured target date solutions that leverage the American Funds glidepath and their underlying building block funds, in 2022 Capital Group launched Target Date Plus, in partnership with the Workplace Solutions group within Morningstar Investment Management LLC, a subsidiary of Morningstar, Inc. The service enables personalized allocation advice tailored to a retirement saver's specific needs and objectives. The service will be made available this year on a number of recordkeeping platforms.
  • Retirement income:  Helping plan participants create a “retirement paycheck” that will last through retirement will require an array of retirement income solutions. Capital Group is working in conjunction with a number of income service providers, each playing a particular role along the spectrum of in-plan, out-of-plan, and hybrid scenarios.
  • Bridging the retirement-plan-to-wealth gap:  Recordkeepers, advisors, and consultants are looking for tools, services, and support to help them bridge the gap between their retirement plan and wealth management business. Capital Group is fostering a seamless and multifaceted approach for helping advisors bridge this gap through wealth solutions including model portfolios, 529 offerings, high-net-worth capabilities, and the latest insights on practice management.
     

About Capital Group

Capital Group 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 March 31, 2023, Capital Group manages approximately $2.3 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.

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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.

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