UBS Global Asset Management has formed a defined contribution and retirement solutions group based out of Chicago.
Last year’s Pension Protection Act opened the door for broader use of target date funds as qualified default investment alternatives and has led to a surge in demand for these diversified, all-in-one solutions that provide plan participants with greater accumulation opportunities than more conservative plan alternatives.
However, UBS says many of the target date funds currently in the market are limited in their construction and in how they rebalance asset classes over time.
“The Defined Contribution and Retirement Solutions Group will enable us to provide plan sponsors with a single end-to-end solution,” says Kai Sotorp, Head of UBS Global Asset Management, Americas. “We believe our suite of target date funds, which use institutional vehicles with institutional pricing, and longevity solutions will be an integral part in achieving this objective.”
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